BENTONVILLE, Ark. (KNWA/KFTA) — Walmart is purchasing 4,500 all-electric delivery vehicles from startup Canoo to be used for delivering consumer products, a news release announced July 12.

According to a news release, the agreement will begin with the Lifestyle Delivery Vehicle, which is designed for small package delivery, containing 120 cubic feet of cargo space. Walmart has the option to purchase up to 10,000 units, the release says.

The agreement also helps Walmart reach its goal of zero emissions by 2040.

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 capablities. 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. Walmart’s massive store footprint provides a strategic advantage in today’s growing ‘need it now’ mindset and unmatched opportunity for growing EV demand, especially at today’s gas prices.

Tony Aquila, Investor, Chairman and CEO of Canoo

Canoo’s electric vehicles will be driven by Walmart associates and used to deliver online orders, from groceries to general merchandise, as well as the potential to be used for Walmart GoLocal, the retailer’s delivery-as-a-service business, the release says.

“We’re thrilled to continue diversifying our last-mile delivery fleet with Canoo’s unique and sustainably focused all-electric technology which will provide our associates with safe, ergonomic delivery vehicles,” said David Guggina, senior vice president of innovation and automation, Walmart U.S. “Today, the closest Walmart to customers is right in their pockets – it’s the Walmart app. By continuing to expand our last-mile delivery fleet in a sustainable way, we’re able to provide customers and Walmart+ members with even more access to same-day deliveries while keeping costs low.” 

Walmart recently began using drones and autonomous vehicles to make deliveries in certain areas. The Bentonville-based retailer says through its expansive last-mile delivery network, Walmart can reach 80% of the U.S. population with same-day delivery on a growing assortment of items.

The agreement comes after Canoo recently announced it is behind schedule on its planned plant in Pryor, Okla., citing supply chain issues. The company expects it to open sometime in 2024.

However, plans for a Bentonville-located headquarters remain on track. Canoo anticipates starting production of the Lifestyle Delivery Vehicles beginning in Q4, 2022, and hitting the road in 2023.