Skipcart pulls out of grocery delivery with Walmart - FreshFruitPortal.com

Skipcart says 'grocery delivery model does not work', pulls out of agreement with Walmart

Another grocery delivery service has stopped partnering with retail-giant Walmart, says Bloomberg. Skipcart ended its agreement with the grocer after just a year, citing losses.

Skipcart's CEO Ben Jones was quoted saying that "the grocery model does not work" and that "it doesn't work today, and it's not going to work six months from now. We're all losing money".

This is true for lots of delivery services that previously had deals with Walmart, too. Skipcart is only one of various to pull out of agreements with the retailer. Big names like Uber, Lyft and Deliv pulled out last year after failed test runs.

Additionally, it seems like the retailer is struggling to make a profit for its e-commerce delivery platforms - adding to Skipcart's issues. The company told Walmart that it would terminate its relationship beginning on April 30 this year.

However, Skipcart recently moved up the date to March, making Walmart reallocate some delivery from stores previously owned by Skipcart.

Ben Jones, CEO of Skipcart, told Bloomberg that it was "losing money hand over fist" with Walmart. Rather than continuing with the retailer, it said that it will focus on delivery for restaurants - something that is more streamlined and easier to turn a profit on.

Previously, subsidiary Jet.com stopped business after only a year as well. In fall of last year, the company announced its InHome delivery program that delivers fresh groceries directly to customers' kitchens.

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