Walmart and Uber Team Up to Take on Amazon | Nasdaq.com

Walmart’s approach vs. Amazon’s: speed vs. control
The biggest advantage of Walmart’s plan to outsource the crucial last-mile delivery to Uber and Lyft is that it’s fast and cheap. In the short run, this will allow the company to quickly scale, which is apparent when compared to Amazon’s Whole Food pilot delivery service. As previously mentioned, Walmart is now rolling out its service to 100 metro areas, up from six, while Amazon/Whole Foods is now working on two-hour delivery in five to six areas .

However, there is a possible cost associated with Walmart’s approach. By relying on a third-party supplier for delivery, Walmart is tethered to the success (or failure) of that company. Uber presents additional risks considering its record of scandals and the fact it isn’t a profitable entity. Last year Uber had a funding down-round, taking money from SoftBank at a valuation of $48 billion; Uber was valued at $70 billion in the prior funding round.

Amazon is moving slower on its rollout, apparently taking its time to control and perfect the user experience. However, if Amazon is good at anything, it’s logistics and the ability to quickly scale. It’s likely Walmart’s announcements will light a fire under the competitive Jeff Bezos; look for further announcements from Amazon regarding its online grocery delivery.

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Walmart and Uber Team Up to Take on Amazon – Nasdaq.com.

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