Walmart agrees to order 4,500 Canoo EVs for last-mile delivery

Canoo, an electric vehicle startup that warned last quarter that it may not have enough money to stay in business, signed an agreement with Walmart to buy thousands of all-electric delivery vehicles.

Canoo wouldn't say how much the deal was worth. Canoo's branded "Lifestyle Delivery Vehicle" is the first of these to be binding pre- orders. There is an option for Walmart to purchase 10,000 units.

Walmart will use pre-production EV to deliver online orders in Dallas-Fort Worth. Canoo will use this as a test bed in the near future. According to Canoo, the LDV will be on the road in 2023.

The motor, battery module and other components of Canoo's LDV are integrated into a multi-purpose platform architecture. Canoo's vehicles are more cost efficient than other delivery vans on the market today thanks to a steer by wire technology, and the company's Chairman and CEO Tony Aquila previously stated that the vehicles are ergonomics, roomy, and more cost efficient than other delivery vans on the market today The lack of a steering column and a large window will be noticed by drivers inside the car.

Walmart workers will use the Canoo EV. Walmart could use the EV for its delivery-as-a-service business.

Canoo is one of the potential pieces of Walmart's delivery system that uses independent contractors, third-party delivery services, and more futuristic tech to respond to consumer demands for immediate access to goods. Walmart has a pilot program with Gatik to use box trucks to deliver goods from its fulfillment centers. The retail giant is working with drones.

Walmart says it can reach 80% of the US population with same-day delivery.

Canoo's plans to establish its headquarters and an advanced manufacturing facility in Arkansas were announced eight months ago. The first manufacturing facility is in Oklahoma.

Canoo chose to locate in Bentonville. Walmart has encouraged suppliers to set up shop in the area.

David Guggina, senior, said that they were encouraged that they were located in close proximity to the Canoo headquarters and that they could collaborate and innovate in real-time.