Walmart is entering the restaurant-delivery business with the launch of a new 30-minute delivery option from 1,400 in-store Subway locations this summer. Yippee! I can have a $15 sub sandwich delivered!
That's just the beginning though. Eventually Walmart wants to also deliver meals from restaurants located near its stores (not just in them), according to executives. And from there, the sky's the limit in terms of its delivery reach.
Senior VP of E-commerce Fulfillment Transformation Greg Cathey said:
“You can draw a circle around most Walmart stores and almost all quick-service restaurant brands are within 5 miles. We think it’s a natural evolution over time.”
The move would of course put them in direct competition with DoorDash, Uber Eats, and other restaurant delivery apps, which the WSJ notes is a “highly competitive business” with “thin margins.” But that wouldn't stop Walmart, as the company has built its entire trillion-dollar business operating on thin margins. You could argue that no one navigates thin margins better than Walmart.
Subway is Walmart's largest in-store restaurant tenant, and its sandwiches are quick to make and they travel well, so it makes sense that they begin the service on their own turf. Other Walmart locations offer in-store Domino's, Taco Bell, and McDonald's restaurants, which I'd imagine means they are next to offer the express delivery.
