Tag Archives: DoorDash Inc

There could be ‘real signs’ for the Fed to slow down

CNBC’s Jim Cramer on Friday said that next week’s jam-packed week of earnings and economic data releases could result in good news for the Federal Reserve’s battle against inflation.

“This market’s trading like next week, we’ll see some real signs that the Fed’s winning its war on inflation, and they can, therefore, ease up on the rate hikes going forward… I wouldn’t be at all surprised if the market got it exactly right,” he said.

Cramer named two important economic events he’s watching next week: the FOMC’s next meeting, which is expected to conclude with a 0.75 percentage point interest rate increase, and the nonfarm payroll report.

“You can’t get a reduction in wages until you see many people losing their jobs, and that’s what the Fed needs to see,” he said.

Cramer also previewed next week’s slate of earnings. All earnings and revenue estimates are courtesy of FactSet.

Tuesday: Eli Lilly, Uber, Devon Energy, AMD

Eli Lilly

  • Q3 2022 earnings release at 6:25 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: $1.91
  • Projected revenue: $6.89 billion

The company has the chance to shine now that health care stocks are some of the new market leaders, he said.

Uber

  • Q3 2022 earnings release at 7:05 a.m. ET; conference call at 8 a.m. ET
  • Projected loss: loss of 18 cents per share
  • Projected revenue: $8.11 billion

Cramer said that if the company reports that there are plenty of drivers but customers can’t afford rides, that’ll be great news for the Federal Reserve.

Devon Energy

  • Q3 2022 earnings release at 4:05 p.m. ET; conference call on Wednesday at 11 a.m. ET
  • Projected EPS: $2.12
  • Projected revenue: $4.16 billion

While the company is doing well, investors shouldn’t buy shares of oil companies when the economy is weakening, he warned.

AMD

  • Q3 2022 earnings release at 4:15 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: 70 cents
  • Projected revenue: $5.69 billion

Cramer said he’s interested in knowing if AMD is losing market share to Intel.

Wednesday: Humana, CVS, Qualcomm

Humana

  • Q3 2022 earnings release at 6:30 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: $6.27
  • Projected revenue: $22.82 billion

CVS

  • Q3 2022 earnings release at 6:30 a.m. ET; conference call at 8 a.m. ET
  • Projected EPS: $2
  • Projected revenue: $76.74 billion

“I fear that CVS is considered a Covid play. Humana is a post-Covid darling,” Cramer said.

Qualcomm

  • Q4 2022 earnings release at 4 p.m. ET; conference call at 4:45 p.m. ET
  • Projected EPS: $3.14
  • Projected revenue: $11.33 billion

He said he wouldn’t be surprised if the stock went up even on a guidance cut, given how much shares of Qualcomm have declined this year.

Thursday: Starbucks, PayPal, DoorDash

Starbucks

  • Q4 2022 earnings release at 4:05 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: 72 cents
  • Projected revenue: $8.32 billion

He said he expects the company to report a solid quarter.

PayPal

  • Q3 2022 earnings release at 4:15 p.m. ET; conference call at 5:30 p.m. ET
  • Projected EPS: 96 cents
  • Projected revenue: $6.81 billion

“I think PayPal has a chance to regroup here, as their flagging days have probably ended,” Cramer said.

DoorDash

  • Q3 2022 earnings release at 4:05 p.m. ET; conference call at 5 p.m. ET
  • Projected loss: loss of 59 cents per share
  • Projected revenue: $1.63 billion

He said that DoorDash is “inviting skepticism” since people aren’t getting their food delivered as frequently as they did during the height of the Covid pandemic.

Disclaimer: Cramer’s Charitable Trust owns shares of Eli Lilly, Devon Energy, AMD, Humana, Qualcomm and Starbucks.

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Jobs report will make or break July’s rally

CNBC’s Jim Cramer on Monday said the most important data this week is the Bureau of Labor Statistics release of the July nonfarm payrolls report on Friday morning.

“If it shows some job growth with no wage inflation, then the fabulous July rally can stand. But if it shows booming hiring with exceptionally large wage increases, then some of this rally, if not much of it, is going to be repealed,” the “Mad Money” host said. 

Job growth has been strong this year, leading economists to say the U.S. is not in a recession even with two back-to-back quarters of negative GDP. 

Another strong jobs report could mean the Federal Reserve, which added a three-quarters a percentage point interest rate hike last week, will have to take stronger action to slow down the economy and inflation.

Cramer also previewed this week’s slate of earnings. All earnings and revenue estimates are courtesy of FactSet.

Tuesday: Uber, AMD, Starbucks, Airbnb, JetBlue, PayPal

Uber

  • Q2 2022 earnings release at TBD time; conference call at 8 a.m. ET
  • Projected loss: loss of 27 cents per share
  • Projected revenue: $7.36 billion

Cramer said he believes Uber will always struggle to make money unless it gets “real” autonomous vehicles.

AMD

  • Q2 2022 earnings release at 4:15 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: $1.03
  • Projected revenue: $6.53 billion

AMD will likely report a strong performance, Cramer predicted.

Starbucks

  • Q3 2022 earnings release at 4:05 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: 77 cents
  • Projected revenue: $8.15 billion

Cramer said he wants to bet on Starbucks CEO Howard Schultz, not against him.

Airbnb

  • Q2 2022 earnings release between 4 p.m. and 4:05 p.m. ET; conference call at 4:30 p.m. ET
  • Projected EPS: 45 cents
  • Projected revenue: $2.11 billion

The company will likely report it’s doing well, Cramer said, adding that he believes shares of Airbnb won’t go higher unless it turns its cash flow into actual earnings.

JetBlue

  • Q2 2022 earnings release at 7 a.m. ET; conference call at 10 a.m. ET
  • Projected per share loss: 11 cents
  • Projected revenue: $2.45 billion

Cramer said he believes the Justice Department will block JetBlue’s deal to acquire Spirit Airlines.

PayPal

  • Q2 2022 earnings release at 4:15 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: 87 cents
  • Projected revenue: $6.78 billion

“If PayPal misses again, this is Elliott’s ballgame,” Cramer said, referring to activist investor Elliott Management’s recently acquired stake in the payment platform.

Wednesday: CVS

  • Q2 2022 earnings release at 6:30 a.m. ET; conference call at 8 a.m. ET
  • Projected EPS: $2.18
  • Projected revenue: $76.41 billion

Cramer said he expects the retail giant to report great numbers.

Thursday: Eli Lilly, Warner Bros Discovery, DoorDash

Eli Lilly

  • Q2 2022 earnings release at 6:25 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: $1.70 
  • Projected revenue: $6.85 billion

Cramer said he believes the success of Eli Lilly’s new weight loss drug will help the company report a great quarter.

Warner Bros Discovery

  • Q2 2022 earnings release after the bell; conference call at 4:30 p.m. ET
  • Projected EPS: 12 cents
  • Projected revenue: $11.85 billion

Cramer said he believes the company will try to muddle through getting rid of its huge debt load totaling around $55 billion.

DoorDash

  • Q2 2022 earnings release at 4:05 p.m. ET; conference call at 6 p.m. ET
  • Projected per share loss: 21 cents
  • Projected revenue: $1.52 billion

Cramer said he’s unsure whether DoorDash will be able to revive its stock price.

Disclosure: Cramer’s Charitable Trust owns shares of AMD and Eli Lilly.

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Uber, DoorDash, Coinbase and more

Uber Eats delivery

Jonathan Raa | NurPhoto via Getty Images

Check out the companies making headlines in midday trading.

Uber, DoorDash – Shares of Uber slumped 4.6% and DoorDash fell 9% on news that Amazon agreed to take a stake in Grubhub in a deal that will give Prime subscribers a one-year membership to the food delivery service.

Coinbase – Coinbase slipped 3.1% after Atlantic Equities downgraded the crypto exchange to neutral and slashed its price target, citing increased volatility in the industry.

Netflix – Netflix dropped 2.1% after Barclays slashed its price target for the streaming service to $170 from $275, anticipating a subscriber loss in the second quarter amid increased competition.

Rocket Companies – Shares of the consumer fintech company jumped 5.5% after Wells Fargo upgraded it to an overweight rating and said Rocket’s set up for a big comeback after tumbling more than 42% this year. Despite a “tough mortgage backdrop,” Rocket will “continue to take market share from its peers,” Wells Fargo said.

Rivian — The electric vehicle maker surged more than 10% after saying it’s on track to deliver 25,000 vehicles this year. In its most recent quarter, Rivian said it produced 4,401 vehicles, and delivered 4,467, in line with the company’s expectations.

Energy stocks – Energy stocks slid Wednesday as oil continued its slump from Tuesday, slipping to about $95 a barrel. The S&P 500 Energy sector fell 4% with shares of Marathon Oil, Conocophillips and Halliburton falling 5.1%, 3.9% and 4.1%, respectively. Occidental Petroleum weakened 2.5%, while Exxon Mobil fell 3.8%.

Cruise stocks – Norwegian Cruise Line Holdings slumped 9.6%, Royal Caribbean fell 5.9%, and Carnival eased 6.7% on concern about second-half cruise ship demand. Norwegian said it would no longer require guests to test for Covid-19 before joining a cruise, unless required by local regulations.

— CNBC’s Tanaya Macheel, Samantha Subin and Sarah Min contributed reporting.

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Forget big cap stocks. Bank of America’s top small-and-mid cap stocks

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Coca-Cola is a buy after earnings ‘clinic’

CNBC’s Jim Cramer explained why he believes Coca-Cola is an endurable, investable stock on the heels of its latest quarterly earnings report.

“Coca-Cola put on a clinic, showing you how a seasoned management team can overcome just about any challenge you might throw at them. That’s long-lasting strength. That’s a great stock to put away,” the “Mad Money” host said.

Coca-Cola reported better-than-expected quarterly earnings and revenue on Monday.

Shares of Coke rose 1.06%, notching a new 52-week high earlier in the day.

“The quarter’s a reminder that sometimes you just want to own the best of breed companies in unassailable positions. … It’s not that Coca-Cola’s got no problems — they’re dealing with the same issues as everyone else — it’s that they’ve been able to safely navigate their way through the thicket,” Cramer said.

He attributed Coke’s success to the popular Topo Chico Hard Seltzer, its DoorDash collaboration and other efforts to gain market share and get products to customers.

Coke said it is seeing higher costs for core supplies like high fructose corn syrup and aluminum. But Cramer noted “the good news is that the companies that make cans are finally adding capacity after holding back for a long time, mostly because of Covid.” 

“If we’re going to get out of this inflationary spiral, we either need to see lots of companies adding capacity, or the Federal Reserve will have to crush the economy. When it comes to Coke, obviously its suppliers boosting their production is what really matters,” he said.

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Amazon Flex drivers hit by surging gas prices are demanding relief

Uber and Amazon Flex drivers protest the fuel price serge and demand more money outside an Amazon warehouse in Redondo Beach, California, March 16, 2022.

Mike Blake | Reuters

On Wednesday morning, about 50 delivery and rideshare drivers parked outside an Amazon warehouse near Los Angeles. Signs taped to their car windows showed a jogging skeleton sporting an Amazon delivery uniform and carrying a package. 

“Running on empty,” the signs read at the rally, which was organized by Mobile Workers Alliance, a group representing gig economy workers. “We can’t afford gas. Tech giants, pay up.”

The caravan of contractors gathered at the Amazon facility, known as FCA2, to urge the online retailer to follow the lead of Uber, Lyft, DoorDash and Walmart. In recent days, those companies have all added fuel surcharges or increased driver earnings to offset higher gasoline prices.

Amazon has remained mum on the topic as Russia’s invasion of Ukraine pushed gas prices in the U.S. to record levels. The national average for regular gas reached as high as $4.33 a gallon, according to AAA. It’s currently $4.29, up 78 cents from a month ago.

Flex drivers make up a portion of Amazon’s rapidly growing in-house logistics arm. The company also relies on a network of contracted delivery companies, planes, trucks and ships to speed orders to customers’ doorsteps.

Launched in 2015, Flex remains a side hustle for some workers and has become a primary source of income for others. Drivers use their own vehicles to deliver packages in over 50 cities. They earn between $18 and $25 an hour, depending on the type of shift, and are responsible for costs like gas, tolls and car maintenance.

Kerry Selfridge drives full time for Flex in Kansas while he works to get his travel agency off the ground. Selfridge has to fill his tank every day and said the price at the pump has made it even harder to make ends meet.

“My car used to fill up on $25, now it’s closer to $40,” Selfridge said. “I’m spending $280 a week, and lucky to make $500 to $700 during that same period.” 

Selfridge, who has three kids, said he’s had to reduce spending on things like meals and entertainment. 

Contractors working for the Amazon Inc. Flex program load packages into vehicles to deliver to customers in San Francisco.

David Paul Morris | Bloomberg | Getty Images

“I have to be able to keep them housed and fed,” Selfridge said. “We are a family that regularly eats expensive meals, but now we are getting used to less expensive things.” 

Flex drivers deliver Prime packages, as well as Whole Foods and Fresh grocery orders, retrieving them from Amazon warehouses scattered throughout their area. Unlike dedicated Amazon delivery drivers, who usually make multiple stops in a single neighborhood, Flex workers may drive many miles between stops. 

One way to maximize earnings is through tips. Flex drivers told CNBC that only deliveries for Whole Foods and Fresh include that option for customers, and those gigs have become harder to find as more drivers seek them out.

Jana, a Flex driver in San Francisco who didn’t want to user her full name, said tips make driving for Flex worth her time. She’s noticed fewer opportunities of late, which means less potential income just as her costs are soaring.

Jana bought a Toyota Prius in 2018 to get better mileage while making deliveries. With San Francisco gas prices topping $5.90 a gallon, “it feels like I don’t even drive a hybrid anymore,” she said.

Competing for surge pay

Base pay on Flex is roughly $18 an hour. Amazon will sometimes offer increased rates, or surge pricing, to entice drivers to pick up a shift. Blocks with surge rates are typically in high demand and can pay up to $35 an hour.

Just as drivers gravitate to orders that include tips, they’ve also flocked to shifts with higher pay, increasing competition among Flex workers.

“I’m not taking any base-pay blocks now,” said Scott Dueringer, a part-time Flex driver in Fort Lauderdale, Florida. “Only surged-pay blocks. But those are few and far between here.”

An Amazon spokesperson said in an emailed statement that the company is “closely monitoring the situation” and listening to drivers’ concerns.

“We’ve already made several adjustments through pricing surges in impacted areas to help ease some of the financial challenges,” the spokesperson said. “As the situation evolves, we’ll continue to make changes where we can to help support our partners.”

Amazon Flex driver Khaterine Cote (pictured far left) and her daughter attended a rally on Wednesday to urge Amazon to increase pay rates as gas prices continue to climb.

Mobile Workers Alliance

Meanwhile, some Flex drivers are picking up work from Uber, DoorDash or Instacart, because they may have shorter routes that require less gas. Last week, Uber added a surcharge of up to 55 cents per trip and 45 cents for Uber Eats deliveries to help drivers deal with higher fuel costs. Lyft followed with a similar announcement.

Laura Chelton in Seattle said she ditched Flex entirely and returned to working as a full-time nanny. Some former colleagues are also leaving because, when it comes to the economics of the job, “it just doesn’t work,” Chelton said.

Khaterine Cote, who attended Wednesday’s rally, relies on earnings from Flex and other delivery services to take care of her two young children and to support family members in Venezuela. 

Cote, a single mom, brings in $140 to $150 a day from Flex and said about half her pay is going to gas. On top of that, a 40-year high in inflation rates means she’s paying more for all of her other daily essentials.

“Right now I don’t have savings because everything is more expensive,” Cote said. “So that’s really difficult for every single driver at the moment.”

WATCH: As Prime One Day shipping expands, here’s what it’s like to be an Amazon Flex delivery driver

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Cramer sees post-Covid staying power for Etsy, Cash App parent Block

Etsy and Block are Covid-era winners that will continue to thrive even after the pandemic, CNBC’s Jim Cramer contended on Friday.

“You need to understand just how special these stocks are,” the “Mad Money” host said. “While they can have some huge swings, once the volatility’s over, I bet they won’t easily give back their gains.”

Etsy shares soared 16% Friday after the e-commerce marketplace provider reported better-than-expected earnings and revenue Thursday. Even with Friday’s big move, the stock is down nearly 50% over the past three months. The steep decline came as Wall Street rotated into more defensive parts of the stock market and as investors questioned the staying power of pandemic success stories.

Shares of Block, formerly known as Square, skyrocketed 26% Friday after beating Wall Street expectations on earnings and revenue for its fourth quarter. The company also released a rosy outlook for the current quarter and full-year based on the growth of its mobile payment service, Cash App.

Like Etsy’s, Block’s stock has been crushed in recent months. It’s still down more than 40% over the past three months, despite Friday’s gains.

Cramer, who previously warned that many companies aren’t ready for a post-pandemic world, said that the payment giant is “firing on all cylinders” and praised Cash App as “brilliant.” 

As for Etsy, Cramer said the e-commerce shopping platform’s growth internationally, evidenced by its recent increase in transaction fees from 5% to 6.5%, signals a path to success even after the pandemic. “Because of Etsy’s unique nature as the No. 1 marketplace for handcrafted goods, I doubt there will be any resistance,” he added.

Cramer also named DoorDash and Airbnb as other Covid-era winners that he believes will continue to succeed post-pandemic.

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DoorDash, Hasbro, Palantir, Walmart and more

The board game Monopoly by toymaker Hasbro at a toy store in New York City.

Getty Images

Check out the companies making headlines in midday trading Thursday.

DoorDash — Shares of DoorDash jumped more than 11% after the food delivery company’s quarterly revenue turned out better than expected. DoorDash reported $1.3 billion in revenue last quarter, beating a Refinitiv estimate of $1.28 billion. The company also posted strong order numbers and added new users, suggesting that demand for food delivery services remains high.

Palantir Technologies — Shares of Palantir dropped 10% after the company’s earnings fell short of forecasts for the fourth quarter, though its revenue beat estimates. Its reported net loss was $156.19 million, wider than the $148.34 million loss seen in the year-earlier period.

Hasbro — The toymaker saw shares rise more than 3% after activist investor Alta Fox Capital Management nominated five directors to the company’s board. Alta is pushing for Hasbro to spin off its Wizards of the Coast unit and its digital games unit, which include franchise brands like Dungeons and Dragons and Magic: The Gathering. Alta owns a 2.5% stake in Hasbro worth around $325 million.

Fastly — The cloud computing company’s shares plunged 30% on disappointing full year guidance. Fastly reported a fourth quarter loss, though it was narrower than analysts had expected, and revenue beat consensus estimates.

Nvidia — Shares of the chipmaker fell 6% despite the company reporting strong quarterly results. Nvidia noted that its automotive business, which represents a growth market for its chips, had revenue drop 14% to $125 million. It also came under pressure on concerns about its exposure to the cryptocurrency market.

Cheesecake Factory — The restaurant chain saw its shares rise 4% despite it reporting earnings that missed analysts’ expectations along with increased input costs that negated a beat in revenue. The company is planning a price increase in new menus that could lift prices later this year.

Walmart — The retail giant’s shares rose more than 2% after Walmart topped earnings expectations and said it’s on track to hit long-term financial targets, calling for adjusted earnings per share growth in the mid single-digits.

Tripadvisor — The travel site operator fell 2.7% following an unexpected quarterly loss and a revenue miss. Tripadvisor said it expects the travel market to improve significantly in 2022 following what it called “unexpected periods of virus resurgence” in 2021.

Cisco Systems — The software company added about 4% after it reported a beat on quarterly revenue and earnings and issued an upbeat full-year forecast, citing strong demand from cloud computing companies. Cisco earnings of 84 cents per share beat estimates by 3 cents. Revenue came in at $12.72 billion, versus estimates of $12.65 billion.

Equinix — Digital infrastructure company Equinix gained more than 4% after TD Securities upgraded the stock to buy from hold, citing its recent pullback. The upgrade came a day after the company reported fourth quarter adjusted EBITDA that beat estimates, as well as a slight revenue beat.

— CNBC’s Yun Li contributed reporting.

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Cisco, DoorDash, Fastly and more

A DoorDash sign is pictured on a restaurant on the day they hold their IPO in New York, December 9, 2020.

Carlo Allegri | Reuters

Check out the companies making headlines after the bell

DoorDash — DoorDash shares surged more than 32% in after-hours trading despite a wider-than-expected quarterly loss. The delivery company reported a loss of 45 cents per share while Wall Street expected a loss of 25 cents per share. However, DoorDash’s fourth-quarter revenue of $1.3 billion beat estimates.

Fastly — The cloud computing services provider saw its shares plunge more than 22% after hours even after a better-than-expected earnings report. Fastly posted an adjusted loss of 10 cents per share on revenue of $97.7 million. Analysts expected a loss of 16 cents per share on revenue of $92.5 million, according to Refinitiv. The company guided to a wider-than-expected first-quarter loss per share.

Cisco Systems — Shares of Cisco rose nearly 5% in extended trading after the company’s fiscal second-quarter report beat Wall Street expectations. The company posted adjusted earnings of 84 cents per share on revenue of $12.7 billion. Analysts surveyed by Refinitiv expected earnings of 81 cents per share on revenue of $12.65 billion. Cisco also gave a sunny outlook for the rest of its fiscal year.

Nvidia — Shares of Nvidia dipped more than 1% after hours despite a better-than-expected earnings report. The chipmaker posted an adjusted profit of $1.32 per share versus $1.22 expected. Revenue also topped the Refinitiv consensus estimate. However, first-quarter gross margin guidance came in slightly lower than analysts expected.

TripAdvisor — TripAdvisor shares retreated 7.5% after hours as the company missed top and bottom-line expectations in its latest quarterly results. The company posted an adjusted loss of 1 cent per share versus the Refinitiv consensus of 8 cents earned per share. Revenue also fell short of expectations.

Fisker — Shares of the electric vehicle maker gained 4.3% in extended trading after the company’s quarterly financial results met Wall Street expectations. Fisker posted a loss of 47 cents per share.

Applied Materials — The semiconductor stock rose 3.9% in extended trading after the company beat analysts’ earnings estimates. Applied Materials reported first-quarter adjusted earnings of $1.89 per share on revenues of $6.27 billion. Analysts had expected a profit of $1.85 per share on revenues of $6.16 billion.

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Walmart expands its direct-to-fridge InHome delivery service to 30 million homes

Walmart is making a big bet on customers’ desire for increased convenience, announcing Wednesday that its InHome delivery service will expand availability from six million to 30 million households, including in cities such as in Los Angeles and Chicago, by the end of this year.

InHome allows Walmart employees wearing cameras to enter a customer’s home to deliver groceries and other purchases or to pick up returns, even when the customer is not there.

“Now you’ve got this ultimate convenience where you get home, the refrigerator is restocked and other items like video games, clothing, toiletries and other non-perishables are on the countertop,” Tom Ward, senior vice president of last mile delivery at Walmart, told CNBC. “We will also pick up your return if you start that process on the app we will grab the item the next day and will process that return for you.”

CNBC was given access to a demonstration of the InHome service in Glendale, Arizona. The process began with the delivery driver attaching a wearable camera. Every delivery can be viewed live or as a recording on the Walmart App. The employee outfitted in protective coverings over their shoes then accessed a smart lock from Walmart at the front door to enter the home and carried the ordered items inside in plastic bins. The delivery person placed items in the refrigerator and on the counter as requested and wiped down all surfaces with a sanitizing wipe before leaving.

“I’ve used it for the last month and a half and have been very satisfied,” Erin Amini, a customer in Glendale told CNBC. “We no longer have to go to the store. We feel safe with Covid. They wear masks, they sanitize and they are also always recording so we know what is happening while they are in our home.”

Walmart is expanding InHome as the lines are blurring between what Insider Intelligence estimates as a $93 billion grocery delivery market and what Coresight Research pegs as up to a $25 billion quick-commerce market, which includes the likes of DoorDash. Walmart’s InHome service costs $19.95 per month with no additional fees, and it’s part of a growing trend of “delivery as a service.”

  • Amazon Fresh grocery delivery is included with a $12.99 per month Prime membership.
  • Instacart Express costs $9.99 a month and offers free delivery for orders over $35 with lower service fees.
  • DoorDash offers a DashPass subscription for $9.99 a month with a minimum of $12 for restaurant orders. DoorDash also makes deliveries from retailers like 7-Eleven and CVS.

Walmart said it will hire 3,000 employees to support its InHome expansion, giving them real world and virtual reality training. They will be paid approximately 9% more than Walmart’s average wage of $16.40 an hour. Walmart’s 3,700 stores will be used as fulfillment centers and InHome delivery drivers will drive electric vehicles as part of the company’s goal of a zero emissions logistics fleet by 2040.

“They’ll also deliver Walmart packages, they’ll deliver Walmart GoLocal client packages, and they’ll do InHome delivery. It’s making the best of all these assets that we’re putting together in a way that’s really sustainable,” Ward said.

Walmart initially launched InHome in 2019 as a pilot in Kansas City, Pittsburgh and Vero Beach, Fla., and it’s since expanded in Northwest Arkansas, Atlanta, Phoenix and Washington, D.C. The company declined to say how many customers the service now has.

“What we’ve learned in the years we’ve been testing our InHome proposition is that customers love the convenience of having the items that they’ve ordered put in their fridge, their freezer, or left on their countertop, or in the garage when they come home. And they can just set and forget and really do the things they want to spend their time doing,” Ward added.

Currently the nation’s largest grocer by revenue, Walmart has used that frequency-driving category to fuel online sales growth by launching convenient ways for people to shop and encouraging customers to buy other items, such as apparel, electronics and more, when replenishing the fridge with a gallon of milk or getting ingredients for dinner.

The big-box retailer is also the nation’s leader in click and collect, a service that allows shoppers to place online orders and pick up purchases in the store or parking lot. One in every four dollars that Americans spent on click and collect in 2021 went to Walmart, according to a recent estimate by Insider Intelligence.

“We think there is no one right answer in the last mile equation,” Ward said. “We want to experiment and then when we see those things that really resonate with our customers we want to scale out to as many people as we possibly can as fast as we can.”

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