Amazon’s latest move into the grocery sector, through a new partnership with Mexican grocery delivery startup Jüsto, signals its push to expand its food and essentials offerings.
Amazon customers in Mexico can order fresh produce, meat and other groceries directly from Jüsto’s platform via the deal, a move that will help Amazon improve delivery speed in a category that has traditionally lagged behind Walmart.
Walmart continues to solidify its position as the leader in grocery delivery. Walmart + remains a key driver of the company’s success, offering members access to same-day grocery delivery through a supply chain network that Amazon’s grocery offerings have not yet matched.
Amazon Prime struggles to replicate Walmart’s grocery success, despite using its vast eCommerce infrastructure and Prime membership. While Amazon offers grocery delivery through its Whole Foods partnership, it still charges delivery fees in many areas, and the service is limited to select locations. For many Prime members, groceries remain a secondary offering, with the service primarily used for fast shipping on non-grocery items. However, the convenience of bundling groceries with other Amazon benefits is gradually attracting more shoppers.
Grocery shopping is a key priority for Walmart+ and Amazon Prime customers, but Walmart holds the edge with its broad grocery delivery network and no-fee, same-day delivery. Eighty-seven percent of Walmart+ subscribers also have Amazon Prime memberships, underscoring the overlap between the two services. Still, Walmart’s established infrastructure and cost-effective delivery options give it a dominant position in the grocery space, while Amazon continues to build its offerings in a bid to close the gap.
Here’s a look at other developments from Amazon and Walmart in the past week.
AWS Launches AI Partner Alliance
Amazon Web Services launched an initiative to expand the reach of its Generative AI Innovation Center.
Generative AI Partner Innovation Alliance, announced by AWS Monday (Nov. 4), is designed to give customers access to a network of systems experts and consulting firms to help them deploy generative artificial intelligence solutions. Introduced last June, the Generative AI Innovation Center collaborated with customers including DoorDash, Nasdaq and the PGA Tour.
Amazon Prime Video Debuts AI-Powered TV Recaps
Amazon Prime Video is using generative AI to provide textual recaps for viewers to catch up on TV shows. The feature, now in beta, which delivers key plot points and cliffhangers without requiring viewers to rewatch or search for summaries, aims to enhance the viewing experience. The “X-Ray Recaps” are available on Amazon Fire TV devices in the United States for select original series like “Daisy Jones and the Six” and “The Boys.” There are plans to expand to more devices and shows by the end of the year.
Electric Vans to Support in-Home Delivery Service
Chevrolet’s BrightDrop 400 electric vans now support Walmart’s in-home delivery service in some U.S. cities. The vans, designed to enhance efficiency and reduce carbon emissions, will help Walmart scale its service to reach 62 million households nationwide. The vans will roll out in Austin, Dallas, Denver, Detroit, Orlando, northwest Arkansas and the San Francisco Bay Area by the end of 2024.
Unlocking Data Potential
At Walmart’s Inspire event last month, Walmart Data Ventures showcased how first-party data can help merchants and suppliers optimize retail strategies. Granular data — such as sales by store type and regional preferences — can be used for better product assortments and category management. A key development was the launch of Walmart Luminate Insights Activation, a self-serve tool for suppliers to optimize digital ad campaigns using data insights. Walmart also announced the rebranding of its insights platform from Luminate to Scintilla, set for February 2025, as part of a larger expansion into new markets like Mexico and Canada.
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