Canoo, an American electric automobile startup based in the Bentonville area of Arkansas, has received an unexpected lifeline as retail giant Wal-Mart has placed a massive order for the startup’s all-electric delivery van, called Lifestyle Delivery Vehicle (LDV).

Just a couple of months after admitting that it was running out of funds, Canoo received an order for 4,500 units of all-electric LDVs, with the encouraging option to extend the order to as many as 10,000 units.

Wal-Mart, a multinational retail corporation operating a chain of hypermarkets, discount department stores, and grocery stores across the United states and many other parts of the world, has plans to use the Canoo LDVs for delivering online orders from groceries to general merchandise. The EVs may also be used for Walmart GoLocal – the retailer’s delivery-as-a-service business.

Designed and developed at Canoo’s Oklahoma factory, the all-electric LDV is built on the startup’s proprietary multi-purpose platform (MPP) architecture. It features a cabin and customized cargo space, and the startup claims that the EV has been optimized for sustainable last mile delivery use cases. The MPP architecture integrates electric motors with battery module and other vital driving parts. The steer by wire technology of the vehicle results in fewer moving components and reduced cabin intrusion, which results in more usable interior space and better driving ergonomics.

As per Canoo’s claims, the LDV has specifically been designed for high frequency stop-&-go deliveries of a wide range of items, including grocery and meals. The modular design and 120 cubic feet (roughly 3.4 cubic meters) cargo volume can be adapted to customer needs.

Tony Aquila, Chairman and Chief Executive Officer (CEO) of Canoo, said in a statement that he and his team members were feeling proud on Walmart’s decision of buying thousands of Canoo LDVs to improve its already impressive logistics capabilities.

Speaking on the topic, Aquila added, “Our LDV has the turning radius of a small passenger vehicle on a parking friendly, compact footprint, yet the payload and cargo space of a commercial delivery vehicle. This is the winning algorithm to seriously compete in the last mile delivery race, globally.”

The all-electric Canoo LDV is expected to enter production sometime in the fourth quarter (Q4) of this year, while deliveries to customers will likely commence in 2023. However, Canoo and Walmart have plans to kick-off advanced deliveries to refine and finalize configuration of the LDVs in the Dallas Fort Worth metroplex sooner than later.