By Nathalie Voit

Walmart is teaming up with electric vehicle (EV) maker Canoo to deliver online orders for its growing e-commerce business in a sustainable way, the retailer said in a press release posted to its website on July 12.

According to the announcement, Walmart signed a deal to acquire 4,500 of Canoo’s fully-electric delivery fleet, beginning with its Lifestyle Delivery Vehicle (LDV), a commercial EV designed for sustainable last-mile orders. The Bentonville, AR-based company will have the option to purchase up to 10,000 units as part of the agreement.

The high-tech EVs will be driven by Walmart associates and be used to deliver everything from groceries to general merchandise. The all-electric units may also be employed for Walmart GoLocal, the retailer’s delivery service for local businesses.

Walmart said the deal is part of its broader effort to achieve net zero by 2040.

“We’re thrilled to continue diversifying our last mile delivery fleet with Canoo’s unique and sustainably focused all-electric technology, which will provide our associates with safe, ergonomic delivery vehicles,” senior Vice President of Innovation and Automation at Walmart U.S. David Guggina said in the news release.

“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 provide customers and Walmart+ members with even more access to same-day deliveries while keeping costs low,” Guggina added.  

The electric delivery vans are expected to roll out in 2023. However, according to the post, Walmart will begin testing the mobility fleet in the Dallas-Fort Worth area in the coming weeks.