Walmart Is Teaming Up With Uber To Take On Amazon

Walmart is testing a grocery delivery service that would allow shoppers to order items online and have them delivered to their door through Uber or Lyft, the company announced Friday ahead of its annual shareholders meeting.

Those who buy groceries through the program would pay a $7-$10 delivery charge to Walmart. After placing an order, Walmart associates would complie the items and request an Uber or Lyft to transport the groceries to the customer’s location. Walmart will be testing this program with Uber in Phoenix and with Lyft in Denver, Bloomberg reports.

It’s not the first time Walmart has experimented with grocery delivery. The retailer has been piloting a program with Sam’s Club since March that delivers groceries and other goods to consumers in Miami through Deliv. The retailer also offers home delivery in San Jose and Denver.

The move gives Walmart more ammunition to compete against Amazon, which has its own next-day delivery service in addition to Amazon Prime Now, which lets customers order items ranging from electronics to snack foods and have them delivered in an hour.