Exclusive: Walmart, Google-backed Deliv end online grocery partnership

(Reuters) – Walmart Inc and logistics firm Deliv pulled the plug on a key same-day grocery delivery partnership, dealing a setback in the retailer’s race against rival Amazon.com Inc to deliver groceries to customers’ homes.

The world’s largest retailer began bolstering its partnerships with third-party courier firms to reach consumers in 100 U.S. cities last year, after failing to use Uber and Lyft to deliver groceries, and struggling in its attempt to use its own employees to deliver goods.

Deliv, which was one of Walmart’s earliest partners with pilot programs in Miami and San Jose, served the retailer with a 90-day termination notice, and the two companies stopped working with each other in late January, according to two people familiar with the situation.

Walmart confirmed the previously unreported decision, and said it still partners with seven delivery firms, including DoorDash and Postmates, four of which it signed up in January.

People familiar with the Walmart partnership with Deliv said the Deliv drivers had to frequently wait 40 minutes or more to collect grocery orders when they showed up at the store. One reason for that, they said, is because Walmart gives a priority to customers over delivery drivers during regular hours, which complicated the partnership.