Imagine needing an essential item and having it delivered to your doorstep within hours through a simple tap on your phone. This convenience is powered by Walmart's aggressive push into last-mile delivery, with its Spark Driver platform expanding at remarkable speed as a cornerstone of the retailer's instant commerce strategy.
Strategic Growth: Walmart's Last-Mile Delivery Network
Walmart activated three times as many pickup locations in fiscal year 2023 (ending January 31, 2023) compared to the previous year, demonstrating its commitment to strengthening last-mile delivery services. According to company data, the Spark Driver platform now serves 15,000 pickup points including Walmart stores and retail locations of Walmart GoLocal customers, with platform drivers collecting and delivering from these sites. Walmart claims this expanded coverage now reaches 84% of U.S. households.
As Walmart's largest delivery service provider, the platform employs thousands of independent contractor drivers who fulfill customer orders daily. This robust delivery capability contributed significantly to Walmart completing 248 million store delivery orders in FY2023. The expanded network also supports growth for Walmart GoLocal, the retailer's white-label same-day and next-day local delivery service that similarly utilizes Spark drivers.
Driver Recruitment and Platform Advantages
Walmart reports tripling its Spark driver count during FY2023. The consistent order volume from both Walmart stores and GoLocal partners serves as a key attraction for potential drivers.
"Thanks to this, our customers can rely on us to save time with convenient pickup and delivery options without markup, making Walmart an ideal choice for both shoppers and drivers," stated Nav Chadha, VP of On-Demand Delivery for Walmart U.S.
The company has enhanced the platform's appeal through driver app improvements, streamlined order acceptance processes, competitive compensation structures, and flexible scheduling—measures designed to attract high-quality drivers and maintain service standards.
Walmart GoLocal: Extending Delivery Capabilities to Businesses
Walmart GoLocal represents the retailer's foray into business-to-business last-mile delivery, enabling enterprises of all sizes to leverage Walmart's extensive delivery network and technical infrastructure. This service marks Walmart's strategic shift from pure retailer to logistics provider.
By monetizing its delivery network through GoLocal, Walmart creates new revenue streams while offering businesses competitive delivery solutions. The platform completed over 3.5 million deliveries in FY2023 and is preparing for potential demand surges following its upcoming integration with Salesforce Commerce Cloud.
Technology as a Competitive Differentiator
Walmart continues investing heavily in delivery technology, implementing route optimization algorithms, real-time tracking systems, and automated sorting solutions. Artificial intelligence analyzes traffic patterns and order volumes to dynamically adjust delivery routes, while predictive analytics forecast demand to optimize resource allocation.
Market Competition and Future Outlook
While Walmart benefits from its vast physical store network, competitors like Amazon maintain technological advantages in drone delivery and route optimization. The retailer faces ongoing challenges including rising labor costs and urban congestion.
Nevertheless, the growing consumer demand for instant delivery presents significant opportunities. Walmart's continued investment in last-mile infrastructure—including exploration of drone and robotic delivery systems—positions the company to expand its share in the instant commerce market while building a comprehensive omnichannel retail ecosystem.