Walmart Expands Driverless Delivery Program With Ford and Argo AI
Walmart partners with Ford and Argo AI to bring autonomous grocery deliveries to three major US cities. The initiative aims to reduce delivery costs and support the retailer's growing e-commerce business.
Walmart expands its autonomous vehicle program by partnering with Ford and Argo AI to launch driverless grocery deliveries in Miami, Austin, and Washington, D.C. The collaboration uses Ford Escape Hybrid vehicles equipped with Argo AI technology to fulfill online orders for door-to-door delivery. This initiative marks the first multicity autonomous delivery service for the retail giant.
The new delivery option supports Walmart+, the company's membership program that offers free unlimited grocery deliveries to compete directly with Amazon Prime. While Walmart experiences massive e-commerce growth, it currently struggles to turn a profit in its online business. Autonomous vehicles provide a potential solution by lowering the high costs associated with traditional last-mile delivery methods.
Walmart already operates smaller self-driving delivery pilots with Gatik and Cruise, and this new partnership builds on a previous 2018 test with Ford. The companies initially deploy a small fleet of vehicles in each of the three target cities before expanding the service over time. Argo AI leaders state that focusing on multiple cities simultaneously demonstrates the true potential for autonomous delivery at a scalable level.