DoorDash has reportedly decided to stop delivering orders for Walmart.
Insider reports(Opens in a new window) that DoorDash informed Walmart of its plans to end their partnership so it could focus on “its long-term customer relationships” in a letter sent to the retailer earlier this month.
That’s a curious reason for DoorDash to stop doing business with Walmart. The delivery company was founded in 2013, and the Walmart partnership was announced(Opens in a new window) in 2018, which means the companies have been working together for nearly half of DoorDash’s existence.
Deloitte said(Opens in a new window) in its “Global Powers of Retailing 2022” report that Walmart remains the largest retailer in the world, too, so it’s not like DoorDash is breaking things off with a minor partner.
It seems more likely that Walmart’s efforts to expand its own delivery services—including additional tests of delivery by drone, the growth of Walmart’s delivery fleet, and the continued push for in-home deliveries—make it more of a competitor to DoorDash than a partner.
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DoorDash didn’t immediately respond to a request for comment.
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