By Cathaleen Chen.
Wal-Mart Stores, Inc. (WMT – Get Report) will begin to offer meal kit services on its website in December, according to the owner of a meal kit company that’s currently in talks to work with the grocery behemoth.
Walmart is hoping to offer an array of meal kits from different companies on its website, according to Michael McDevitt, the CEO of Terra’s Kitchen, a meal kit company based in Baltimore, Maryland.
“This is a low-risk model for Walmart to see if their e-commerce shoppers will have an interest in meal kits, and if so, which ones are the most interesting to them,” he told TheStreet. “There’s no infrastructure risk, no marketing risk.”
Essentially, Walmart will be a portal for different meal kit companies to sell their products as a third-party host. The meal kit companies will then pay the retailer a referral fee for driving customers to them, the McDevitt explained.
Read more at The Street.