Can (and How Might) Walmart Take a Bite Out of DoorDash and Uber Eats’ Market Share as it Partners With Subway?

In a recent press release issued by Walmart, the company announced that its shoppers — in select locations, at least for now — would soon be able to order Subway directly through the retailer’s app (or Walmart.com). Shoppers could add the meal on to an existing Walmart Express Delivery order, or as a standalone order in and of itself.

“The future of retail is about bringing more of customers’ everyday needs into a single, seamless experience. Bringing Subway delivery into the Walmart app is another way we’re using our proximity to customers and scale to make everyday decisions simpler and everyday life a little easier,” said Tracy Poulliot, Walmart U.S. EVP of eCommerce and Marketing.

And with Subway being Walmart’s most significant in-store restaurant tenant, it makes sense to start here. The service is now live in Connecticut, Florida, Georgia, Ohio, Pennsylvania, and Texas, with plans for expansion to 1,400 locations as the summer draws to a close. Full customization of the Subway menu is integrated into the Walmart app and the Walmart.com portal, allowing shoppers to seamlessly add their favorite sandwich to a more traditional Walmart order.

Walmart Could Threaten DoorDash and Uber Eats By Entering the Food Delivery Market, While Also Adding Value to its Own Core Customer Base

As Mitchell Parton detailed for Modern Retail, this move by Walmart into the food delivery space could end up threatening established players such as DoorDash and Uber Eats while also adding value for the retailer’s built-in customer base.

Parton cited Poulliot as indicating that Walmart was already poised to expand the integrated food delivery program, with the groundwork ready to accommodate other in-store restaurant partners. Further, Greg Cathey — SVP of digital fulfillment transformation for Walmart — was quoted on an even larger expansion to partner with restaurants outside of Walmart locations.

“Almost all quick-service restaurant brands are located within five miles of Walmart; we think it’s a natural revolution over time to think through thoughtfully how we expand this service. Our first priority right now is we need to really focus on our in-store tenants and providing this service for them,” Cathey said.

“We have a wide assortment of ready-made meals already within the four walls of our store, and we know customers are responding really well to that, but we also know that they look for other options for convenience throughout the day — sometimes that’s a Subway, sometimes that’s a variety of restaurants that might exist. We are really going to focus on listening to the customers as we think about what options and what expansion opportunities exist in the future,” Poulliot added when speaking to the press.