Walmart partners with Postmates to expand online grocery delivery

Walmart Inc said on Tuesday it has partnered with delivery service Postmates Inc in Charlotte, North Carolina, as part of the retailer’s plan to expand its grocery home delivery services to 100 metro areas.

Last month, Walmart said it would expand the service to reach more than 40 percent of U.S. households in its attempt to step up fight against rival Amazon.com Inc.

Walmart’s online grocery delivery service, which provides customers fresh produce, meat, seafood and bakery items to their doorstep, has a fee of $9.95 and a $30 minimum order.

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Shares of Walmart were up nearly 1 percent at $87.14 in premarket trading.

Most recently, Walmart is also rumoured to have expressed due diligence for a 51% stake in Indian e-commerce giant Flipkart, following speculation that the US retailer was in rival bids for the stake against fellow American online giant, Amazon.

A stake in Flipkart would pit Walmart against Amazon.com in India and local media have reported that Amazon is exploring a rival offer for India's largest home-grown e-commerce player. 

Walmart could also aid Flipkart in developing its private label business, while for Walmart a deal would open up a vast market and another front to take on its biggest rival.

All three parties have failed to comment on the acquisition talks.

With additional reporting by Benjamin Fitzgerald