Wal-mart Stores Inc (NYSE:WMT) is setting the stage for a food-fight with Amazon.com Inc (NASDAQ:AMZN), as it unveiled its same-day delivery service to more than 100 cities in the US by the end of the year.
The announcement comes one month after Amazon announced Prime service free two-hour delivery from Whole Foods.
READ: Wal-Mart’s Q4 earnings miss overshadows progress made in fight against Amazon
In a statement, Walmart is offering same-day three-hour service and is targeting to reach more than 40% of US households by the end of the year.
It is charging a flat fee of US$9.95 for delivery with a minimum US$30 delivery order.
It plans to partner with Uber and other crowdsourced delivery companies to deliver the groceries.
Tom Ward, Walmart’s vice president of digital operations did not address the rivalry issue directly but said: “Unlike other services, customers will find the same everyday low prices” on groceries through Walmart’s website and app.
READ: Amazon continues expansion of Whole Foods grocery deliveries
In pre-market trade, Walmart shares were up 0.45% at US$88.70 while Amazon was up 0.63% at US$1,598.16.