Business Insider reported that DoorDash is ending its years-long partnership with Walmart of delivering groceries and other products from stores to customers, people close to the matter said.
According to Business Insider, one person close to the situation who requested anonymity because the matter is confidential said DoorDash decided to stop working with the retail giant “as it was not longer mutually beneficial” and to “focus on its long-term customer relationships.” Their identity is known to Insider.
DoorDash sent Walmart a letter to terminate their partnership earlier this month, and gave a 30 day notice, which makes the termination effective in September, the person said.
Walmart posted the following in its Walmart Offers website: Walmart Inc. and DoorDash Inc. are ending their four-year delivery partnership. “We have agreed to part ways,” Walmart said in an email Friday. “We’d like to thank DoorDash for their partnership and support of our customers the past several years.”
A DoorDash spokesperson told TechCrunch in an email: “We’d like to thank Walmart for their partnership and are looking forward to continuing to build and provide support for merchants in the years ahead with our leading Marketplace and Platform offerings.”
What went wrong between DoorDash and Walmart? Business Insider wrote that Walmart is acquiring Delivery Drivers, Inc., the gig-labor management company behind Walmart’s Spark network for an undisclosed amount, a Walmart spokesperson confirmed to Insider.
According to Business Insider, DDI acquisition is the latest of several moves by Walmart to bring more of its logistics network in-house, including acquiring vendor management software firm Volt Systems in early August, last-mile peer-to-peer delivery app JoyRun in 2020, and same-day delivery startup Parcel in 2017.
Business Insider also wrote that The DDI acquisition has been in the works for months and is intended to simplify the driver experience with a single point of contact, according to a DDI spokesperson.
Earlier this month, TechCrunch reported that DoorDash has teamed up with Facebook Marketplace “to make that awkward exchange of items with a stranger a bit easier”. The company said DoorDash Drive, its business-to-business service that provides drivers to merchants through their own website or app, is now in the early stages of testing a service that will allow DoorDash drivers to pick up and drop off Facebook Marketplace items to customers.
In short, it appears that Walmart and DoorDash initially were good partners for each other. As time went by, each company decided to build itself up in an effort to move away from that partnership. Sometimes, things just don’t work out.