A recent report from Reuters states that rideshare companies Uber and Lyft will no longer be handling grocery for deliveries for Walmart. This is a setback for Walmart as it competes with Amazon for quick residential grocery delivery.
The decision marks an abrupt end to a business relationship that Walmart and Uber announced with much fanfare less than two years ago.
Ubers test program with Walmart made deliveries in four markets and stated that it ended the program as a general pullback of delivery services. The Lyft pilot in Denver failed to gain traction, according to the report.
Walmart has stated that grocery delivery will not be impacted in affected markets. Walmart also partners with on-demand companies Postmates, DoorDash, and Deliv.
Walmart has stated its goal is to deliver groceries to 40% of US consumers by the end of 2018.
“It is incredibly hard to deliver people and packages together,” said a source with a delivery company that works with Walmart and has direct knowledge of the matter. “They are two completely different business models.”