DoorDash's partnership with America's largest retailer has come to an end after more than four years of delivering groceries to Walmart consumers.
Business Insider claims that the delivery service and Walmart are no longer working together because their relationship "was no longer mutually beneficial" and they want to "focus on long-term customer relationships." September will see the adjustment come into effect.
The information was released shortly after the retailer revealed it would buy Delivery Drivers Inc. (DDI), the business responsible for staffing Spark, Walmart's delivery service platform.
The acquisition, which would internalise driver support, will "simplify the driver experience with a single point of contact," according to Walmart.
Spark has taken over as Walmart's "biggest delivery-service provider" since its 2018 launch, accounting for approximately 75% of all deliveries made by Walmart. Because of its extensive reach, this business can deliver groceries to around 85% of American households.
The partnership between Walmart and DoorDash began in 2018 as a pilot programme to deliver groceries to Walmart customers in the Atlanta region, but it later expanded to all 50 states.
The purchase of DDI is not the only action Walmart has taken recently in the delivery industry. The retail behemoth revealed in May that it would be growing GoLocal, its Spark-powered white-label delivery service that only recently debuted.
In a similar vein, Business Insider stated that DoorDash is concentrating on expanding DoorDash Drive, its own white-label delivery business.
In a statement, a DoorDash representative said, "We'd like to thank Walmart for their partnership and are looking forward to continuing to build and support merchants in the years ahead."
Despite its separation with Walmart, DoorDash still has a significant big-box retailer under its belt. BJ's teamed up with DoorDash in March to give consumers the on-demand delivery service, making it the first wholesale chain to do so.
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