Wal-Mart to Use Uber and Lyft for Grocery Delivery Service

Wal-Mart Stores Inc. plans to launch a new grocery delivery service later this month using drivers from Uber Technologies Inc. and Lyft Inc.

Under the pilot program, online orders placed in 14 markets will be fulfilled by the ride-hailing companies. Workers at local Wal-Mart stores will be responsible for packaging the groceries and contacting drivers to make the deliveries, while customer payments will be made directly to Wal-Mart.

The program will start in Denver and Phoenix, with deliveries covered by Lyft and Uber, respectively. Wal-Mart’s Sam's Club warehouse chain began pilot tests of a similar program with Deliv Inc. in Miami earlier this year.

Wal-Mart already offers its own delivery service in 40 markets at a fee of $7-$10. The Uber and Lyft-based delivery fees are expected to be in the same range, but Wal-Mart won’t have to employ the drivers.

Wal-Mart’s delivery program intensifies competition in the growing home delivery market, which includes online retail giant Amazon.com, traditional retailers, the U.S. Postal Service and a variety of startup companies.