California EV startup Canoo and Walmart are teaming up to use Canoo’s lifestyle delivery vehicles (LDV) for delivery.
Last month, Walmart announced it would buy 4,500 Canoo LDVs to advance its climate goals and support the growing demand for at-home delivery services.
Not even two weeks after finalizing the deal with Walmart, Canoo’s LDVs are hitting the streets for testing. Canoo’s EV vans were sent out for their first deliveries in Dallas in a 7-days-a-week program.
Delivery services and e-commerce are two industries that blew up during the pandemic. As most of us were locked down in our homes during Covid, online shopping (think: Amazon, Walmart, Target) became a favorite hobby, and since you couldn’t pick it up, delivery became a go-to.
Walmart took advantage of this trend, launching Walmart+, a membership program that includes delivery. The service was an instant hit as Walmart’s online shopping business hit $73 billion in net sales in 2022.
However, Walmart has an issue. The largest global retailer is aiming for zero emissions by 2040. More deliveries would equal more greenhouse gas emissions, but this is where Canoo and other commercial EV startups are stepping up to help.
Canoo’s lifestyle delivery vehicles (LDVs) are fully electric and have up to a 250-mile range; the EV vans are designed for delivery businesses with ample cargo space and 1,543 lbs. payload.
The LDV is built on Canoo’s multi-purpose platform, which can be used for several uses (they are even testing it with the US Army).
Walmart looks to cut emissions with Canoo’s LDVs
Users that sign up for Walmart+ may just get their groceries and other items delivered by an electric van soon. Canoo’s LDVs were sent out in the Dallas area for their first runs and to finish configurations.
Canoo’s CEO, Tony Aquila, is excited about the company’s partnership with Walmart, saying:
It’s been awesome to work with Walmart’s highly experienced team to rapidly deploy our LDV’s in real world use cases to finalize a configuration for Walmart.
People are starting to notice the Canoo LDVs as they drive by. Mr. Aquila continues:
And we have been turning a lot of heads in the neighborhoods when driving by in our uniquely identifiable vehicles.
Canoo customized the interior of the LDV to fit Walmart’s needs, including an upgraded 120 cubic feet of storage space. The LDV is built for deliveries with easy load/unloading, a smaller turn radius (for those tight city streets), and easy maneuverability.
Walmart initially ordered 4,500 Canoo LDVs, but the retailer has the option of buying up to 10,000.
Walmart using Canoo LDVs for delivery is a great sight to see. It shows the direction in which delivery is headed. Walmart is the latest company to use EVs for delivery to reduce emissions.
The retail giant joins a growing list of major companies/organizations turning to electric vehicles for their delivery needs. UPS is partnering with Arrival, Amazon is using Rivian-made EV vans, and GM is supplying FedEx with EV delivery vans from its BrightDrop segment.
The progress is encouraging as the most prominent businesses around us are transitioning to electric. This seems to be the start of a new trend.