Walmart has signed a definitive agreement to buy 4,500 all-electric delivery vehicles from Arkansas-based manufacturer Canoo with the option to purchase up to 10,000 units total.
The vehicles will be used to deliver online orders in a more sustainable way, helping Walmart (NYSE: WMT) reach its goal of achieving zero emissions by 2040, the company said.
The first Lifestyle Delivery Vehicles (LDV) are expected to deploy in 2023, although test deliveries to refine and finalize the vehicles’ configuration will happen in the Dallas-Fort Worth metroplex in the coming weeks, Walmart said.
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Canoo (Nasdaq: GOEV) anticipates starting production of the LDVs beginning in the fourth quarter of this year. The company's website lists the price of its Lifestyle Vehicle as "starting at $34,750."
The company also recently won a NASA contract to provide transport vehicles for the crew of the Artemis manned lunar exploration launches.
Canoo is headquartered in Bentonville, Arkansas, as is Walmart, and has its U.S. manufacturing facilities in Pryor, Oklahoma, with teams in Michigan, California and Texas. The company is led by CEO and executive chairman Tony Aquila and President and Director Josette Sheeran.
The LDV is engineered for high frequency stop-and-go deliveries with a customized interior designed for small package delivery.
Canoo’s electric vehicles will be driven by Walmart associates and could potentially be used as well for Walmart GoLocal, the retailer’s delivery-as-a-service business, Walmart said.
“This is the winning algorithm to seriously compete in the last mile delivery race, globally,” Aquila said. “Walmart’s massive store footprint provides a strategic advantage in today’s growing ‘Need it now’ mindset and an unmatched opportunity for growing EV demand, especially at today’s gas prices.”
In addition to dedicated fulfillment centers, Walmart uses 3,800 of its stores to fulfill online orders.
