Walmart has signed a definitive agreement with Canoo, a high-tech advanced mobility company, to purchase 4,500 all-electric delivery vehicles, beginning with the Lifestyle Delivery Vehicle (LDV), with the option to purchase up to 10,000 units.
The vehicles will be used to deliver online orders in an eco-friendly manner, contributing to Walmart’s goal to achieve zero emissions by 2040, the company said in an announcement.
Although the LDV isn't expected to begin hitting the road in 2023, test deliveries to refine and finalize vehicle configuration will kick off in the Dallas-Fort Worth metroplex in the coming weeks.
“We are proud to have been selected by Walmart, one of the most sophisticated buyers in the world, to provide our high-tech, all-electric, American-made Lifestyle Delivery Vehicle to add to their impressive logistics capabilities. Our LDV has the turning radius of a small passenger vehicle on a parking-friendly, compact footprint, yet the payload and cargo space of a commercial delivery vehicle. This is the winning algorithm to seriously compete in the last mile delivery race, globally,” said Tony Aquila, investor, chairman, and CEO of Canoo. “Walmart’s massive store footprint provides a strategic advantage in today’s growing ‘Need it now’ mindset and an unmatched opportunity for growing EV demand, especially at today’s gas prices.”
Canoo, which was also recently awarded a contract with NASA to provide transport vehicles, is an Arkansas-based retailer.
Like Walmart, Canoo is based in Bentonville, AR after moving its headquarters from Dallas in 2021.
Canoo specializes in the manufacturing of electric vehicles and the fleet of LDVs that will cruise the Dallas streets will cost roughly $38,000 per unit.
Canoo’s electric vehicles will be driven by Walmart associates and could potentially be used as well for Walmart GoLocal, the retailer’s delivery-as-a-service business, Walmart said.
LDV is an all-American commercial EV optimized for sustainable last mile delivery use cases. As with all Canoo vehicles, the LDV is built on a proprietary multi-purpose platform (MPP) architecture that integrates the motors, battery module, and other critical driving components.
Canoo utilizes true steer wire technology, resulting in more usable interior space, better driver ergonomics, and the addition of a panoramic window to improve road visibility.
If things go well with the first batch of vehicles, Walmart plans to order up to 10,000 LDVs from Canoo as they look to expand their delivery services in the next few years.