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Fortune

Jessica Mathews

Canoo tested its electric delivery vans for Walmart without airbags, sources say

Canoo Walmart Fortune NHTSA re Tony Aquila

One of Canoo's vans parked in front of a museum in Bentonville, Ark., the town where Walmart's headquarters are based. (Credit: Courtesy of Canoo)

Two years ago, startup Canoo lent a handful of its egg-shaped electric delivery vans to Walmart for their first tests. There was a lot riding on the outcome.

Walmart had signed a non-binding agreement to buy 4,500 of the sci-fi vans. If Walmart went through with the deal, it would help the fledgling, financially-strapped Canoo become a real competitor in the EV industry.

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