DoorDash won’t deliver Walmart groceries from next month

DoorDash is closing its partnership with Walmart, which had the service to deliver groceries and other items from the retail chain to customers for more than four years, according to a report insider, A source close to the situation told insider That DoorDash informed Walmart of its decision earlier this month, saying the partnership was “no longer mutually beneficial” and that it wants to “focus on its long-term customer relationships.”

DoorDash reportedly gave Walmart 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 separate from DoorDash,” Walmart spokesperson Leigh Stidham said in an emailed statement. ledge, “We would like to thank DoorDash for the partnership and support of our customers over the past several years.” DoorDash did not immediately respond ledgeComment request.

However, it is not clear whether DoorDash will offer delivery from Walmart through its app. DoorDash does not currently allow you to order from Walmart, possibly to avoid any conflicts with service provided through Walmart’s website. DoorDash rival Instacart, on the other hand, offers same-day delivery from Walmart in certain regions.

The decision to drop DoorDash as a delivery partner isn’t surprising. Walmart is busy building its own delivery service platform, Spark, which entrusts grocery delivery to its database of gig workers, similar to the way Lyft and Uber operate. Walmart told insider That 75 percent of Spark’s deliveries and services are in 84 percent of homes in the US. Last year, Walmart also announced that it was also working on a white label delivery service called GoLocal to handle last-mile logistics and deliveries for other businesses.

And while DoorDash is ending its partnership with Walmart, it has forged a new partnership with Facebook. The service will now pick up and deliver items purchased through Facebook Marketplace, as long as they are small enough to fit inside the trunk of a car. DoorDash also works with stores such as Bed Bath & Beyond and Macy’s to offer customers same-day delivery.

Update August 20th, 3:08PM ET: Updated to add a statement from a Walmart spokesperson.

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