The news: Walmart will begin allowing customers to order food from Papa John’s through its Express Delivery service via its mobile app and website, with delivery in 30 minutes, per Bloomberg.
Zooming in: The partnership comes just a week after Walmart announced it would let consumers order from Dunkin’ through its app and website. But the Papa John’s deal represents a notable expansion of that strategy. While Walmart is launching Dunkin’ delivery through 150 locations inside its stores before expanding to most of the chain’s roughly 10,000 locations, the Papa John’s partnership will rely entirely on restaurants outside Walmart’s physical footprint.
Why it matters: By layering restaurant delivery onto its existing store and logistics network, Walmart is taking another step toward becoming a super-app, giving consumers more reasons to open its app and order more frequently. It also gives Walmart a foothold in the restaurant delivery intermediary market, which we expect to grow 15.8% to $118.39 billion in sales this year.
Implications for retailers: Walmart sees clear benefits in restaurant delivery. The service can boost engagement and order frequency while getting more mileage out of its existing logistics network.
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