Walmart reduces initial purchase requirement from $35 to secure 2-hour delivery service
In response to the COVID-19 pandemic, Walmart ramped up the development of its two-hour delivery service last year. This rapid delivery service, now available at nearly 3,000 Walmart stores, includes food, consumables, and general merchandise. The service is designed to make it easier for customers to get what they need when they need it, particularly useful for those in a pinch, such as missing a dinner ingredient or in need of a household necessity like diapers.
The two-hour Express delivery service, launched last May, initially had a $35 minimum purchase requirement. However, Walmart dropped this requirement in December, excluding groceries and some other items. This move was in response to customer feedback, as Tom Ward, senior vice president of customer product, stated that customers told Walmart that sometimes the items they needed in a hurry didn't meet the minimum purchase requirement.
Walmart+, a subscription service based around shipping, comes with a $98 a year fee and offers free next-day and two-day shipping. Subscribers of Walmart+ also eliminate the second delivery fee for Express service. Delivery through Walmart's Express service now requires a $10 fee on top of existing delivery charges.
The launch of Walmart's Express service has been described as part of an "arms race" in delivery speed between Amazon and Walmart by Moody's senior retail analyst Charlie O'Shea. Walmart's Express service now rivals Amazon's Prime Now rapid delivery service.
In 2021, Lieferando, a European online food delivery platform, abolished the minimum order quantity for its 2-hour express delivery service and introduced a new service fee. This move mirrors Walmart's decision to remove the minimum purchase requirement for its Express service.
Since officially launching last fall, Walmart+ has gained potentially more than 8 million subscribers, according to a Consumer Intelligence Research Partners analysis. This growth underscores the demand for fast, convenient delivery services in today's fast-paced world.
Walmart deploys a team of 170,000 personal shoppers to pick customers' orders for the two-hour Express service, ensuring a smooth and efficient delivery process. The two-hour delivery service is a testament to Walmart's commitment to customer convenience and satisfaction in the competitive retail landscape.
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