Tom Dougherty, CEO – Stealing Share
23 August 2017
Walmart Uber vs. Amazon Whole Foods?
The doubling of the number of cities for the Walmart Uber pilot partnership, in which Uber delivers groceries, demonstrates Walmart isn’t taking Amazon lightly.
This move certainly seems appropriate with Walmart playing defense. But there’s something odd about it to me.
“I don’t believe for a moment the same person taking advantage of Amazon delivering Whole Foods products is going to be the same person doing the same with the Walmart Uber partnership.”
Walmart introducing grocery delivery is not the same as Amazon offering it. (Amazon has a partnership with Whole Foods.) I know that sounds strange, But there is a very simple reason: the customers are different.
There’s lots of data profiling the difference between the typical Walmart customer and the typical Amazon Prime customer. Average incomes for Walmart shoppers tend to be lower. A large percentage of Walmart shoppers do not have a checking account, debit card or credit card. Amazon customers tend to be more affluent and Whole Foods customers even more so.
Is Walmart Uber a true competitor, or just grabbing another market segment?
Fortune examined it a few years back and reported that the typical Amazon prime customer makes nearly 25% more than the typical Walmart customer.
We all know in brand development, you should know who you are for. But, just as important, brands should know who they are not for. I don’t believe for a moment the same person taking advantage of Amazon delivering Whole Foods products is going to be the same person doing the same with the Walmart Uber partnership.
In fact, I doubt there are many choosing to shop for groceries between the two. It would not make financial sense for a typical Walmart grocery shopper to shop at Whole Foods.
Whole Foods is expensive. Walmart is not.
I think Walmart’s grocery delivery may work in certain geographies. And, truth be told, grocery delivery is the future. But to say that Walmart is offering grocery delivery in an attempt to compete with Amazon is foolish.
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