DoorDash has dissolved its collaboration with Walmart, the largest retailer in the United States, after more than four years of delivering groceries to Walmart consumers.
Due to "mutual indifference" and a desire to "concentrate on long-term client relationships," the delivery service has decided to end its agreement with Walmart.
Walmart's delivery service platform Spark is staffed by a firm called Delivery Drivers Inc. (DDI), and this news follows the retailer's announcement that it will acquire DDI.
The company's stated goal for making the acquisition was to "simplify the driver experience with a single point of contact" Since its launch in 2018,
Spark has accounted for approximately 75% of Walmart's deliveries, making it the retailer's "biggest delivery-service supplier."
As a result of its extensive network, this organisation is able to offer grocery delivery to about 85% of all homes in the United States.
The cooperation between Walmart and DoorDash began in 2018 as a test project in Atlanta and has subsequently spread to other states.
Walmart hasn't been idle in the delivery industry since its acquisition of DDI.
The retail giant revealed plans to grow its white-label delivery service GoLocal, which it first introduced a year ago and is powered by Spark.
DoorDash is investing heavily in expanding its own white-label delivery service, DoorDash Drive.
A representative for DoorDash said, "We'd want to thank Walmart for their cooperation and look forward to continuing to expand and provide support for merchants in the years ahead."
After splitting with Walmart, DoorDash still has a big-box customer. In March, BJ's partnered with DoorDash to offer on-demand delivery.