Walmart Now Delivers Subway Sandwiches With Grocery Orders
Walmart has partnered with Subway to allow customers to add Subway sandwiches to their home delivery orders, using its own driver network to compete with food-delivery services like Uber Eats.
Walmart (WMT) has announced a new partnership with Subway that allows customers to add Subway sandwiches to their Walmart home delivery orders. Walmart is using its own driver network to fulfill these orders, directly competing with food-delivery companies such as Uber (UBER) and DoorDash.
Details
The partnership lets Walmart customers choose from a limited Subway menu and add items to their grocery order via the Walmart website or app. The entire order is delivered by Walmart drivers, eliminating the need for a separate delivery service. The service is currently available in a limited number of locations, with plans to expand.
Context
This move is part of Walmart's broader strategy to expand its delivery services and increase customer loyalty. The food-delivery market is highly competitive, dominated by Uber Eats and DoorDash. Walmart already has a strong delivery network through its Walmart+ membership and store-to-door delivery service.
What This Means for Investors
The partnership could increase customer frequency and average order value for Walmart. It also poses a direct challenge to Uber Eats and DoorDash, but requires investment in delivery infrastructure. The direct financial impact is not yet clear, but it is a strategic step to strengthen Walmart's e-commerce position.
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