UPDATE: Walmart has denied the claims made by Jindel and says that telling trucking companies who they can do business with is “illegal.”
Walmart is telling for-hire motor carriers that they cannot also haul goods for Amazon if they want to continue working for Walmart, according to a new report.
The report of the escalating tensions between Walmart and Amazon comes via an article in D.C. Velocity. That article quotes transportation consultant Satish Jindel, who describes a “cold war” between the two companies that led to Walmart’s warning to truckers.
Walmart Amps Up For Fight Against Amazon
From the report:
“Jindel, who made a presentation on Amazon’s take-no-prisoners rise to online retail dominance, said he became aware of Wal-Mart’s actions through some of his sources. A Wal-Mart spokesman would not disclose the extent of the company’s outside carrier relationships. Wal-Mart is a large user of trucking services, utilizing its private fleet, dedicated contract relationships with motor carriers, and the for-hire truck network. In an e-mail, the spokesman said Wal-Mart drivers log about 700 million miles annually, but wasn’t specific as to whether that included drivers working on a for-hire basis.”
Jindel argues that brick and mortal retail stores will like Walmart will need to use aggressive tactics in order to prevent being completely dominated by Amazon in the e-commerce sector.
Last month Walmart proved that it is willing to adopt Amazon’s “think outside the box” mentality when it announced a last mile delivery pilot program that involves having store employees drop off packages on their way home from work.