Walmart’s Big Bet: 4,500 Canoo Electric Vans Transform Last-Mile Delivery

How Walmart’s massive purchase of Canoo electric vans accelerates eco-friendly deliveries and reshapes U.S. logistics.

By Medha deb

Created on Sep 27, 2025

How Walmart’s massive purchase of Canoo electric vans accelerates eco-friendly deliveries and reshapes U.S. logistics.

Walmart’s Landmark Electric Vehicle Partnership with Canoo

In a defining move for the future of sustainable logistics, Walmart announced an agreement to purchase 4,500 all-electric delivery vans from California-based startup Canoo, with an option to increase the order up to 10,000 vehicles. These vans, known as Lifestyle Delivery Vehicles (LDVs), are at the heart of Walmart’s ambitious plans to achieve a zero-emissions fleet by 2040 and keep pace with America’s shifting delivery expectations.

The Drive Behind the Decision

With e-commerce orders soaring and rapid delivery now a key customer expectation, Walmart identified the need for an extensive, efficient, and eco-friendly last-mile delivery network. The partnership with Canoo, a cutting-edge EV manufacturer, offers the retailer both innovative technology and sustainability credibility as it transitions away from combustion-engine vehicles.

Order details: Initial purchase of 4,500 Canoo LDVs, with the opportunity to scale up to 10,000 based on rollout success.
Zero-emissions vision: Aligns with Walmart’s pledge to eliminate emissions from all company vehicles by 2040.
Operational rollout: Early deployment and route optimization began in the Dallas-Fort Worth metroplex, allowing Walmart to customize van configurations in live delivery environments.

Canoo’s Lifestyle Delivery Vehicle: Design for the Future

The Canoo LDV promises a leap forward in electric commercial vehicle design. Unlike some conventional vans, Canoo’s LDV is built from the ground up around the unique needs of urban and suburban package delivery:

Multipurpose platform: Integrates battery, motors, and electronics for efficiency and reliability.
Cabin & cargo optimization: Delivery-focused interior, with up to 120 cubic feet of cargo space, suited for high-frequency, stop-and-go drop-offs and grocery or meal delivery.
Steer-by-wire technology: Reduces mechanical parts, improving maintenance simplicity and interior space.
Enhanced ergonomics: Cab layout focuses on driver comfort and swift entry/exit, aided by panoramic windows for greater road visibility.

The modular cargo bay adapts to changing needs, offering flexibility as package volumes fluctuate or as the nature of last-mile delivery evolves.

Comparing Canoo LDV to Other Delivery Vans

Feature	Canoo LDV	GM BrightDrop EV410	GM BrightDrop EV600
Cargo Volume	120 cu ft (3.4 m³)	11.3 m³	17 m³
Target Use	Urban, frequent stops, smaller loads	Medium urban/rural, larger loads	Large loads, high-volume urban/rural
Technology	All-American platform, steer-by-wire	GM electric platform	GM electric platform
Branding	Walmart-branded, Canoo-exclusive*	Walmart pilots	Walmart pilots

*Canoo’s agreement with Walmart includes exclusive collaboration and prohibits Canoo from selling to Amazon or entering partnerships with Amazon-affiliated businesses during Walmart’s contract period.

Walmart’s Expanding Last-Mile Delivery Strategy

Improving the last mile—the final journey from a distribution node to the customer’s doorstep—is a logistical and environmental challenge. Walmart’s current arsenal includes:

3,800 stores acting as fulfillment hubs, efficiently bringing products within 10 miles of 90% of the U.S. population.
Various delivery methods: Walmart associates, Spark Driver Network (independent contractors), third-party service providers, plus pilots with autonomous vehicles and delivery drones.
Walmart GoLocal: Delivery-as-a-service arm, serving both Walmart and third-party retailers, potentially using Canoo LDVs in the future.

The addition of Canoo LDVs creates a more sustainable, in-house solution for high-volume, urban package delivery. This effort furthers Walmart’s mission to offer same-day delivery to 80% of U.S. addresses for an increasing range of merchandise.

Environmental and Competitive Implications

Zero-Emission Commitment: Walmart’s EV orders, including with Canoo and BrightDrop, position the company as a leader in sustainable logistics among major U.S. retailers.
Corporate Impact: The deal provides Canoo, a startup facing financial uncertainty, with crucial market validation, revenue, and a potential lifeline.
Fleet Adaptability: The modular, upgradeable design of Canoo’s LDVs supports Walmart’s evolving service requirements and helps control long-term fleet costs.
Competitive Barriers: Exclusive provisions prevent Canoo from working with Walmart’s chief rival, Amazon, throughout the vehicle contract’s duration, reflecting the strategic stakes in retail delivery.

What Makes Canoo’s Technology Stand Out?

Canoo’s approach is unique in several respects:

Ground-up American engineering: The proprietary multipurpose platform (MPP) is built for commercial electric vehicles, not repurposed from passenger vans.
Operational flexibility: The steer-by-wire system, panoramic windows, and customizable cargo hold improve driver experience and operational efficiency.
Branding power: Walmart-branded Canoo vans amplify the retailer’s commitment to green innovation, with the first branded units generating significant public attention during rollout tests in Texas neighborhoods.

Challenges and Industry Context

Walmart’s partnership with Canoo unfolds against a backdrop of fierce competition in urban logistics and rapid innovation:

Electric vans from established automakers like GM (BrightDrop), Ford, and Rivian are increasingly present on U.S. roads, making the commercial EV sector highly competitive.
Canoo has faced financial difficulties and strategic pivots, but Walmart’s order offers a stabilizing anchor and differentiates the retailer’s delivery profile.
Despite this collaboration, Walmart has tested and piloted other electric vans, emphasizing the pragmatic, technology-agnostic nature of its logistics strategy.

Looking Ahead: Impact on the Future of Retail Delivery

Walmart’s Canoo deal signals a new chapter in last-mile logistics marked by:

Substantial investment in sustainability, responding to consumer expectations and regulatory pressures.
Acceleration of EV innovation through real-world, high-demand applications, influencing the broader delivery vehicle market.
Support for domestic EV manufacturers, aligning with trends toward localized production and technological independence.

Ultimately, as Walmart scales its all-electric delivery fleet, the retail giant sets an influential example for businesses seeking to balance efficiency, economy, and ecological responsibility.

Frequently Asked Questions (FAQs)

Q: Why did Walmart choose Canoo for its electric delivery vans?

A: Walmart selected Canoo for its innovative, American-made EV platform tailored for last-mile, high-frequency deliveries. The modular cargo area, advanced technology, and ergonomic driver features matched Walmart’s operational needs and sustainability profile.

Q: How does the Canoo LDV compare to other delivery vans?

A: Canoo LDVs are smaller than GM’s BrightDrop EV410 or EV600 but are optimized for urban deliveries and rapid, frequent stops. Their modular interior and American engineering suit agile, city-centric logistics.

Q: What is the significance of the Walmart and Canoo exclusivity agreement?

A: The contract prevents Canoo from providing vehicles or entering business relationships with Walmart’s archrival Amazon, ensuring the technology remains a competitive advantage for Walmart during the duration of the agreement.

Q: Are Walmart employees driving the Canoo LDVs?

A: Yes, Walmart associates operate these vehicles, supporting both internal Walmart deliveries and GoLocal, the delivery-as-a-service program that could extend the technology beyond Walmart’s own network.

Q: How does this move impact Canoo as a company?

A: The Walmart partnership serves as a vital lifeline for Canoo, providing financial stability, production scale, and public visibility. It positions Canoo as a credible player in the burgeoning commercial EV field.

Key Takeaways: Walmart’s Electric Leap Forward

Walmart’s purchase of 4,500 Canoo LDVs sets a new bar in last-mile, zero-emission delivery.
The exclusive partnership shapes the commercial EV landscape and influences sustainability strategies throughout the logistics sector.
Innovation, flexibility, and environmentally conscious operations define Walmart’s evolving delivery ecosystem.

References

Author

medha deb

Medha Deb is an editor with a master's degree in Applied Linguistics from the University of Hyderabad. She believes that her qualification has helped her develop a deep understanding of language and its application in various contexts.

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