DoorDash is ending its partnership with Walmart, which has supplied grocery and other chain store goods to customers for more than four years, according to a report of Insider. A source close to the situation told Insider that DoorDash informed Walmart earlier this month of its decision, citing that the partnership was “no longer mutually beneficial” and that it wants to “focus on its long-standing customer relationships.”
DoorDash has reportedly given Walmart a 30-day notice, meaning the partnership will officially end in September. The two companies first teamed up in 2018 when Walmart began testing groceries ordered through its site, delivered by DoorDash. It went live in Atlanta, Georgia to begin with, but has since expanded to several other states.
“We have agreed to part ways with DoorDash,” Walmart spokesman Leigh Stidham said in an emailed statement to The edge. “We would like to thank DoorDash for their cooperation and support of our customers over the years.” DoorDash did not immediately respond to The edge‘s request for comment.
However, it’s unclear whether DoorDash will offer deliveries from Walmart through its app. DoorDash doesn’t currently let you order from Walmart, presumably to avoid conflicts with the service it offers through the Walmart website. By contrast, DoorDash rival Instacart offers same-day deliveries from Walmart in some areas.
The decision to drop DoorDash as a delivery partner isn’t all that surprising. Walmart has been busy building out its own delivery service platform, Spark, which turns grocery delivery into its own database of gig workers, similar to the way Lyft and Uber operate. Walmart told Insider that Spark accounts for 75 percent of its supplies and services, 84 percent of US households. Last year, Walmart also announced that it is also working on a white label delivery service called GoLocal to handle last-mile logistics and deliveries for other companies.
And while DoorDash is canceling its partnership with Walmart, it has forged a new one with Facebook. The service will now retrieve items purchased through Facebook Marketplace, as long as they are small enough to fit in the trunk of a car. DoorDash also works with stores like Bed Bath & Beyond and Macy’s offers customers same day delivery.
Update August 20, 3:08 PM ET: Updated to add a statement from a Walmart spokesperson.