Delivering Value: Digging into the Google/Walmart E-Commerce Alliance
With news of Google and Walmart teaming up in an effort to unseat Amazon as the king of e-commerce, many have been wondering what the future of online shopping will look like. While much of the resulting conversations have been centered around voice-ordered shopping though Google’s virtual assistant, what has largely fell under the radar is the impact this alliance will have on an industry ripe for disruption.
The grocery delivery market, which is booming in Asia and Europe, remains largely untapped in the U.S. market.
That is until the world’s largest physical retailer (Walmart) and one of the world’s largest data companies (Google) teamed up. By joining together, these two behemoths have the opportunity to change the trajectory of the U.S. grocery industry.
It’s no secret that the way Americans’ shop is changing, and this partnership is primed to play a large role in that. Grocery, despite being the second largest household spending category, is the last big bastion of e-commerce. Despite the recent Amazon/Whole Foods news, there is not currently a great option for Americans to do their grocery shopping online. This partnership changes everything. With Walmart’s massive physical infrastructure and Google’s unmatched sourcing of customer data, there is a huge opportunity for the two companies to emerge as a leader in the space, pioneering a type of “virtual pantry” to remind consumers when to reorder items, much like Amazon has done with non-grocery products.
The battle for grocery delivery prominence will be fierce as Amazon has spent the past two years focused on getting closer to end customers and speeding up delivery of product. While they’ve done a good job, there is a huge barrier for them: physical footprint close to consumers. Walmart already has this physical footprint, 90% of Americans live within 10 miles of a Walmart store, giving them (and Google) a huge leg up.
Only time will tell how this battle will unfold, but keep an eye on these two partnerships as they look to conquer the U.S. grocery delivery market.
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