Amazon and Walmart: A Head-to-Head Race in Logistics and AI
Tariff pressures continue to reshape the retail and e-commerce landscape. In response, industry leaders Amazon and Walmart are intensifying investments in technology to boost operational efficiency and strategically venture into new markets. Artificial intelligence (AI) is at the core of both companies’ plans, with Amazon focusing on customer interaction and automation and Walmart concentrating on merchant efficiency and product sourcing. These moves come amid a broader debate about consumer data rights in an AI-driven world.
As both companies introduce disruptive technologies and services, the implications for other businesses and consumers are significant.
Walmart’s Aggressive Push into Freight Services
Walmart is expanding its commitment to freight services by launching a brokerage program designed to boost its logistics capabilities. This move is intended to increase competitiveness with Amazon. According to a recent report, carriers looking to participate must meet specific requirements, including operating between 10 and 1,000 trucks, holding operating authority for at least five consecutive years, and maintaining substantial liability and cargo insurance.
Walmart already has one of the largest internal infrastructure and private trucking fleets in North America. Through its new brokerage program, Walmart aims to create an attractive ecosystem for third-party sellers and other logistics and fulfillment providers.
Amazon Eyes the Used Car Market
Amazon is reportedly considering entering the auto market, potentially allowing the e-commerce giant to help dealers sell used cars, along with new ones.
If Amazon proceeds, their logistics network could create a streamlined, digital-first car-buying experience, potentially disrupting conventional dealerships and online platforms like Carvana.
Also, Walmart is planning to open or remodel over 45 fuel stations this year, with more than 450 operating across 34 states by the end of the year.
AI: The Next Competitive Frontier
Artificial intelligence has become a battleground for corporate supremacy. Both Amazon and Walmart are deploying AI to refine customer service, logistics, and overall business operations.
Walmart introduced “Wally,” a generative AI-powered assistant, to support its merchants. Wally analyzes complex datasets, provides insights into product performance, responds to operational questions, and automates complex processes.
According to the PYMNTS Intelligence and AI-ID collaboration, “What Generative AI Has in Store for the Retail Industry,” 77% of business leaders across consumer and retail companies view GenAI as the most impactful emerging technology.
Further demonstrating AI’s importance, Amazon announced the next generation of Amazon Connect. This launched AI-powered interactions to strengthen customer relationships and improve business results. Amazon also revealed that beginning March 28, its voice assistant Alexa will process all voice interactions in the cloud to enable new generative AI capabilities, meaning users can no longer prevent their voice recordings from being transmitted to Amazon’s servers.
On the legal front, Amazon won a victory with the dismissal of a class-action lawsuit accusing the company of misleading shareholders regarding its pricing and logistics strategies.
