In a move aimed at further extending the electrification of its fleet and supporting its climate goals, retail giant Walmart announced today an agreement to purchase 4,500 all-electric vehicles for last-mile delivery from high-tech advanced mobility company Canoo.

The purchase agreement will begin with Canoo’s Lifestyle Delivery Vehicle (LDV), which is a commercial electric vehicle (EV) optimized for sustainable last-mile delivery use cases, and engineered for high-frequency stop-and-go deliveries and vehicle-to-door drop-off.

Tony Aquila, Investor, Chairman, and CEO of Canoo, said:

“Our LDV has the turning radius of a small passenger vehicle on a parking friendly, compact footprint, yet the payload and cargo space of a commercial delivery vehicle. This is the winning algorithm to seriously compete in the last mile delivery race, globally. Walmart’s massive store footprint provides a strategic advantage in today’s growing ‘Need it now’ mindset and an unmatched opportunity for growing EV demand, especially at today’s gas prices.”

Canoo’s EVs will be driven by Walmart associates and used to deliver online orders, from groceries to general merchandise, and potentially for Walmart GoLocal, the retailer’s delivery-as-a-service business.

Walmart will be the first to receive the LDV, and while the vehicle is expected to be on the road next year, the companies plan to kick off advanced deliveries to refine vehicle configuration in the upcoming weeks. The agreement comes with an option for Walmart to purchase up to 10,000 units.

Walmart stated that the deal will contribute to its goal to achieve net zero emissions by 2040. The company launched its net zero commitment in 2020, outlining initiatives to reach its target, including electrifying and zeroing out emissions from all of its vehicles, powering facilities with 100% renewable energy, and transitioning to low-impact refrigerants for cooling and electrified equipment for heating in its stores, clubs, and data and distribution centers.

The agreement follows Walmart’s announcement earlier this year of an order for 5,000 electric delivery vans from General Motors’ commercial delivery and logistics decarbonization-focused subsidiary BrightDrop.

David Guggina, Senior Vice President of Innovation and Automation, Walmart U.S, said:

“We’re thrilled to continue diversifying our last mile delivery fleet with Canoo’s unique and sustainably focused all-electric technology which will provide our associates with safe, ergonomic delivery vehicles. Today, the closest Walmart to customers is right in their pockets – it’s the Walmart app. By continuing to expand our last mile delivery fleet in a sustainable way, we’re able to provide customers and Walmart+ members with even more access to same-day deliveries while keeping costs low.”