US retail giant Walmart has signed an agreement with advanced mobility developer Canoo to purchase 4,500 all-electric delivery vehicles, with the option to purchase up to 10,000 units.
Beginning with Canoo’s Lifestyle Delivery Vehicle (LDV), the new fleet will be used to deliver e-commerce orders sustainably, contributing to Walmart’s goal to achieve zero-emissions by 2040.
While the LDV is expected to begin hitting the road in 2023, the companies plan to kick off advanced deliveries to refine and finalize vehicle configuration in the Dallas-Fort Worth metroplex in the coming weeks.
Optimized for sustainable last-mile delivery use cases, the LDV is built on a proprietary multi-purpose platform (MPP) architecture that integrates the motors, battery module and other critical driving components. Its customized interior is designed for small package delivery, at competitive per stop economics. The modular design and 120ft3 cargo volume are adaptable to evolve with customer needs which contributes to a decreasing per unit investment over time.
Tony Aquila, investor, chairman and CEO of Canoo, said, “We are proud to have been selected by Walmart, one of the most sophisticated buyers in the world, to provide our high-tech, all-electric, American-made LDV to add to their impressive logistics capabilities. Our LDV has the turning radius of a small passenger vehicle on a parking friendly, compact footprint, yet the payload and cargo space of a commercial delivery vehicle. This is the winning algorithm to seriously compete in the last-mile delivery race, globally. 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.”
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 GoLocal, the retailer’s delivery-as-a-service business.
David Guggina, senior vice president of innovation and automation, Walmart US, said, “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. 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.”
Canoo anticipates starting production of the LDV beginning in Q4 2022.