Walmart will buy 4,500 electric vehicles from startup Canoo for delivery

BENTONVILLE, Ark. (KNWA/KFTA) – Walmart is buying 4,500 all-electric delivery vehicles from startup Canoo to be used for consumer product delivery, a news release said July 12.

According to a press release, the deal will begin with the Lifestyle delivery vehicle, designed for small package delivery, containing 120 cubic feet of cargo space. Walmart has the option to buy up to 10,000 units, the statement said.

The deal also helps Walmart reach its goal of zero emissions by 2040.

We are proud to have been selected by Walmart, one of the most sophisticated buyers in the world, to supply our high-tech, all-electric, USA-made delivery vehicle to add to their impressive logistics capabilities. . our LDV has the turning radius of a small passenger vehicle on a compact, parking-friendly footprint, but the payload and cargo space of a commercial delivery vehicle. It is the winning algorithm to seriously compete in the race for last mile delivery, globally. Walmart’s massive store footprint provides a strategic advantage in today’s growing mindset and an unparalleled opportunity for growing EV demand, especially at today’s gas prices.

Tony Aquila, Investor, President and CEO of Canoo

Canoo’s electric vehicles will be driven by Walmart associates and used to deliver online orders, from groceries to general merchandise, as well as the potential to be used for Walmart’s GoLocal delivery business as retailer service, the statement said.

“We are excited to continue to diversify our last mile delivery fleet with Canoo’s unique and sustainable all-electric technology that will provide our associates with safe and ergonomic delivery vehicles,” said David Guggina, senior vice president of Canoo. innovation and automation at Walmart. “Today, the closest Walmart to customers is right in their pockets: it’s the Walmart app. By continuing to expand our last-mile delivery fleet in a sustainable way, we’re able to offer customers and Walmart+ members even greater access to same-day deliveries while keeping costs low.

Walmart recently started using drones and self-driving vehicles to make deliveries in certain areas. The Bentonville-based retailer says that through its extensive last-mile delivery network, Walmart can reach 80% of the US population with same-day delivery on a growing assortment of items.

The deal comes after Canoo recently announced it is behind schedule for its planned plant in Pryor, Okla., citing supply chain issues. The company expects it to open in 2024.

However, plans for a Head office located in Bentonville stay on track. Canoo plans to begin production of the Lifestyle delivery vehicles from the fourth quarter of 2022 and hit the road in 2023.