Walmart, Target Follow Amazon, Try Local Package Delivery

A Walmart electric van used for grocery delivery outside a Walmart Neighborhood Market in Rogers, Arkansas, U.S. January 12, 2021. Picture taken January 12, 2021. Beth Hall/Handout via REUTERS

Walmart and Target are testing their own home package delivery services in the United States – stealing a page from Amazon’s play book – as e-commerce demand strains traditional carriers like United Parcel Service, FedEx and the U.S. Postal Service.

The move is just the latest example of how Walmart Inc (WMT.N) and Target Corp (TGT.N) aim to close the gap with Amazon.com Inc (AMZN.O), the No. 1 online retailer. Amazon has recruited armies of small businesses to provide delivery services from vans emblazoned with the company’s logo – an effort that has helped it control customer wait times and costs.

UPS (UPS.N), FedEx Corp (FDX.N) and the USPS have been inundated with packages since the coronavirus pandemic hit U.S. shores last year. That has forced retailers to seek new ways to get goods into the hands of customers while containing soaring delivery costs.

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SOURCE: Reuters