Walmart is making a big change on its delivery system to try to compete against Amazon. This change includes drones, apps, including new cities that will use this service, and also a new tool called Scan and Go. It doesn’t matter if you don’t understand much about technology, because we are just going to talk about Walmart’s new idea. So, let’s see why this change is happening.
Walmart includes drones to new cities for deliveries
Walmart announced it will expand its deliveries with drones to several important cities of Florida and Texas at the beginning of the year. With this innovation, the company continues increasing the number of places where it uses this technology. Did you know Walmart was the first retailer to use drones to deliver in 5 states and now it will include even more.
This decision was made after Amazon showed its own delivery improvements, offering “same day” and “next day” delivery to more than 4,000 towns. The company is spending $4 billion to triple the size of its delivery network by the end of 2025. Because of this, Walmart is moving quickly to keep up with the competition.
The new cities that will get Walmart’s drone service include Houston and Charlotte in Texas, and Tampa and Orlando in Florida. Some cities already have access to this technology, such as Dallas, Fort Worth, and Bentonville.
Amazon competition
In April, Walmart CEO, Doug McMillon, explained that the company is learning from its competitors (especially Amazon). McMillon said they are observing companies that make things well, study their methods, and then they do it better at Walmart. This shows the company is focused on staying strong in a market where fast delivery has become extremely important.
Executives have also said that Walmart will continue growing its drone delivery reach. The goal is to make fast delivery available to as many customers as possible.
How deliveries have changed
Before the company started using drones, deliveries were limited by customers’ zip codes. This meant that only people who lived close to Walmart stores could get same-day delivery, therefore, many customers were left out because of distance.
Now, thanks to drone technology, 93% of Americans can order items like food, clothing, electronics, and garden products in a single delivery. There are still limits on the quantity of some items, but overall, Walmart has greatly expanded the number of people it can deliver to quickly.
How the drones work
Walmart’s drones wait in individual charging platforms until they receive an order through the Wing app. When a customer makes a purchase, the app notifies the the company’s staff to prepare the order.
Once it’s ready, the drone flies toward the customer’s home and it can reach its destination in less than 5 minutes. When the drone is at the house, it hovers at about 150 yards above the ground and lowers the package using a tether. Each drone can carry up to two and a half pounds and can fly within a six-mile radius of a Walmart store. During the flight, the drone avoids traffic and other obstacles using built-in sensors.
What’s more, customers can track their package through the app and even see a countdown clock showing when the drone will arrive.
All of Walmart’s drones must follow the rules created by the Federal Aviation Administration (FAA), which regulates everything related to flying in the United States.
Scan and Go
The Scan and Go system was created by Walmart to help customers save time when they shop at its stores. This app allows them to scan products as they shop, pay, and leave without waiting in long checkout lines. This is how Walmart describes the process:
- Customers need to download the Walmart app and enable location access.
- On the Store Mode landing page, they must tap “Scan and Go.”
- Customers scan each item and place it in their carts.
- At the end, the app asks customers to check that the number of items in the cart matches the number scanned.
- Customers tap “Check Out.”
- They go to a self-checkout kiosk.
- They scan a QR code at the register and confirm their payment.
- Once the transaction is complete, customers can leave the store without waiting.
So, these drones make fast delivery possible for almost everyone, and tools like Scan and Go make shopping inside the store quicker and more comfortable. Isn’t it great?