One of the Bluff City’s largest employers is poised to get a lot more electric vehicles (EVs).
Bentonville-based Walmart — which employs more than 6,000 locally — has signed a definitive agreement with Canoo, the EV manufacturer, to purchase 4,500 electric delivery vehicles. Walmart will receive its Lifestyle Delivery Vehicle (LDV), and has the option to purchase up to 10,000 units.
The deal is part of Walmart’s quest to reach carbon neutrality by 2040, and the LDV is expected to be ready for official use in 2023. In the coming weeks, however, Walmart and Canoo will start deliveries in the Dallas-Fort Worth area, to refine and finalize vehicle configuration.
Made for last-mile delivery, the LDV is engineered for high-frequency, stop-and-go deliveries, and vehicle-to-door drop-offs. It has a customized interior designed for small package deliveries, and its modular design and 120-cubic-foot cargo volume are adaptable. The EVs are expected to be driven by Walmart associates, who will use them to deliver a variety of online orders, from groceries to general merchandise. The vehicles also have the potential to be used for Walmart GoLocal, its delivery-as-a-service business.
“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,” said David Guggina, Walmart U.S. SVP of innovation and automation, in a press release.
For the retail giant, delivery options like the LDV are key, as it regularly uses stores, in addition to fulfillment centers, to handle online orders. Walmart wields 3,800 of its stores — located within 10 miles of 90% of the U.S. population — to complete online orders, with a combination of Walmart associates, independent contractors, and third-party delivery service providers making the final delivery.
In some locations, autonomous vehicles and drones make the deliveries, too.
Canoo isn’t the only EV manufacturer working with Walmart, either. It's a client of BrightDrop, the electric delivery and logistics business of General Motors (GM), as well.
And it’s not the only one.
FedEx is also a major customer of BrightDrop, and in June, it received its first 150 EVs from the company. Called Zevo 600s, they were sent to locations of FedEx Express — the company’s largest subsidiary — throughout Southern California.
FedEx Express was announced as BrightDrop’s first customer in January 2021; and it received its first five Zevo 600s — then known as the EV600s — in December 2021. These were part of an order of 500 vehicles; and in January 2022, the company signed an agreement with BrightDrop that reserved priority production for another 2,000. FedEx could add up to 20,000 more in the coming years.
Like Walmart, FedEx has set its sights on reaching carbon neutrality by 2040. The company plans to invest $2 billion in the effort, with the funds divided among three areas: vehicle electrification, sustainable energy, and carbon sequestration. It includes a $100 million commitment to Yale University (FedEx founder Fred Smith's alma mater), so the institution can establish the Yale Center for Natural Carbon Capture. The hope is that the center will find new methods of carbon sequestration at scale and help offset greenhouse gas emissions equivalent to current airline emissions.
By 2040, FedEx also wants its parcel pickup and delivery (PUD) fleet to be entirely comprised of electric, zero-emission vehicles.
