Walmart is trying to take on Amazon Prime with its own delivery subscription service. The new service, Walmart Plus launches on 15th September 2020. It costs 12.95 dollars a month and 98 dollars a year which is cheaper compared to 119 dollars for Amazon Prime.
Features of Walmart Plus
Subscribers will get unlimited free deliveries from stores on orders over 35 dollars. More than 160,000 items are covered by this. This includes fresh groceries and household essentials. The retail giant says these deliveries can be as fast as same-day, but it seems delivery speed will also depend on what exactly is in each order.
Subscribers will also get fuel discounts at affiliated gas stations which will be worth up to five cents on the gallon. There will also be the option to shop in-store using Walmart’s Scan & Go mobile application. The application will let customers scan items as they shop and pay through their phone. The service does not include free delivery for the larger range of items available at Walmart.com. Although many of these items already include free two-day delivery for orders over 35 dollars.
Walmart plus is not a new project for the retail giant. Last year it tested a similar service named Delivery Unlimited which also offered free grocery deliveries for 98 dollars a year. Walmart plus was originally a rebrand of Delivery Unlimited. These plans were delayed by the pandemic. Existing Delivery Unlimited subscribers will be inducted into this new service.
Will Walmart Plus Be As Effective as Amazon Prime?
Market analysts have suggested that a Walmart subscription service could attract millions of customers and provide regular revenue for the company. However, it’s not clear if Walmart plus can compete with Amazon Prime. Amazon’s subscription service is definitely costlier but offers a far wider range of benefits. It includes access to the company’s streaming service, Amazon Prime Video. It also has access to Prime Music, Twitch Prime free photo storage, and also Prime Now, which offers one and two-hour delivery on certain items. Also unlike Walmart plus, Prime does not have a minimum purchase amount to qualify for free delivery.
Walmart has stated that it will be adding new perks to Walmart plus in the coming months. But its initial offerings may fail to attract a significant amount of customers. According to the president of the retail consulting firm Customer Growth Partners, Craig Johnson, for a 35 dollar minimum and 98 dollar annual fees, this is thin gruel.