Walmart is using geospatial tech to expand delivery reachWalmart is using geospatial tech to expand delivery reach

Geospatial technology is vastly expanding Walmart’s already large ecomm reach—allowing the retail giant to touch an additional 12 million households with its delivery. 

The technology, which Walmart began testing last year, divides geographic areas into hexagonal grids instead of ZIP codes, creating more precise delivery zones, the Bentonville, Arkansas-based retailer said in a recent press release. It has also helped Walmart with the accuracy of its delivery orders.

Each hexagon tile includes real-time data such as slot availability, drive time, store capacity, customer demand and more. This allows Walmart to adjust delivery zones with greater accuracy.

The technology divides geographic areas into hexagonal grids instead of ZIP codes, creating more precise delivery zones. Graphic courtesy of Walmart.

Walmart’s geospatial platform is built on open-source software and incorporates advanced geospatial intelligence, using a variety of internal and external data sources, the retailer said in its press release.

By shifting from rigid mapping methods to a more data-driven model, Walmart claims it can deliver to more customers. Orders are now able to be fulfilled by multiple Walmart stores within a service area.

Previously, a customer order was typically handled by a single Walmart store based on location. If a product wasn’t available at that store, customers often received their orders in multiple deliveries at different times.

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Walmart said it expects its U.S. ecommerce business to become profitable for the first time this year, the company announced at its annual investors meeting last week.

Although just a few years ago Walmart reported a $1 billion loss on its ecommerce business, the company has since leveraged its scale to achieve profitability in the current fiscal first quarter, Chief Financial Officer John David Rainey said during the event.

But the retailer’s delivery system isn’t without room for improvement. In recent months, Walmart’s relationship with its delivery drivers has been tested.

Late last year, the Consumer Financial Protection Bureau filed a lawsuit against Walmart and tech company Branch Messenger, alleging the companies forced delivery drivers to use costly deposit accounts for pay and misled them about how they could access their earnings.

According to the lawsuit, Walmart and Branch opened accounts for last-mile Spark drivers and deposited pay into them without the drivers’ consent. Spark uses independent drivers to fulfill Walmart delivery requests.

The lawsuit also claims Walmart told Spark drivers that using Branch was required for payment and that those who refused would be terminated.

In addition, the lawsuit alleges Walmart and Branch misled drivers about same-day access to their earnings.

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