Walmart is bringing new meaning to the old phrase, “I’ll buy if you fly,” and not just for late night burger and beer runs. The big box store is looking to use its current customer base to cut down on logistics costs by crowrdsourcing its online deliveries. Basically, consumers could register their information with Walmart and drop off any packages going out to an address along their route home in exchange for in-store discounts allowing them to save money and the planet simultaneously.
Crowdsourcing by definition is, “the practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people and especially from the online community rather than from traditional employees or suppliers.” Walmart hopes its crowd of customers with “shared economy” incentives will help them compete with online retailers like Amazon by sending orders straight from the local store instead of a distribution center. Ideally the customer/drivers could check in at the beginning of their shopping trip and leave with several extra stops and a pocket full of savings.
According to Jeff McAllister, senior vice president of Walmart U.S. innovations, "This is at the brain-storming stage, but it's possible in a year or two." The idea has been tested by several other crowdsourcing businesses but never on a scale the size of Walmart’s clientele though it will most likely be an option only available in major metropolitan areas. A variety of legal, regulatory and privacy issues will need to be addressed before Walmart can move forward with the initiative. Despite the ever changing regulations involved in crowd sourcing, the company seems to think the challenges are worth the rewards. “I see a path to where this is crowdsourced,” Walmart.com’s chief executive in the U.S., Joel Anderson, told Reuters.
By adopting a “going my way” attitude towards delivery, Walmart can also cut down the number of trucks on the road with the sole purpose of dropping off packages. The company hopes these steps will help reduce emissions and the number of vehicles on the road contributing to traffic congestion as an added bonus to implementing crowdsourced deliveries. All of this is in an effort to not only cut cost but boost the controversial brand’s image in the eyes of its potential customers.
Some skeptics wonder if the company would do better to focus on the pilot program called Walmart To Go, a same-day delivery service that is being tested in five metro areas using its own delivery trucks. "You are comfortable with a FedEx or UPS truck in your driveway, but what about a stranger knocking on your door?" asked Matt Nemer, a retail analyst at Wells Fargo Securities. Perhaps Walmart should consider crowdsourcing their current employees instead of general customers, giving staff an opportunity to earn additional income by dropping off items on their way home.
Image source: FreeDigitalPhotos
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