Walmart has announced a subscription service similar to Amazon Prime for $98 per month. The Walmart+ plan is $21 cheaper than Amazon prime but comes with substantially fewer perks, at least to start with. Walmart expects to add new perks to Walmart+ in the future.
This is not the first time Walmart has tried to compete with Amazon Prime. In 2015, it created a subscription service called ShippingPass with a $49 annual fee that offered two-day shipping but the program was discontinued in 2017.
It sounds like Walmart is targeting Walmart+ subscription at people who already shop at Walmart. 90% of Americans live within 10 miles of a Walmart store and are likely to shop there just based on proximity.
Walmart said that its Delivery Unlimited, which focused on grocery delivery will be rolled into the new Walmart+ service.
Here are the key perks that come with the Walmart+ subscription plan.
- Free shipping over $35
- $0.05/gal discount on gas
- Check out with Walmart scan and go app at the store (you can skip the line at the stores)
- Same delivery on certain items such as groceries
Walmart+ Vs Amazon Prime
Walmart+ stacks up poorly against Amazon Prime, which offers free shipping on purchases of any amount. Amazon offers streaming video service through Amazon Prime Video. It also offers free unlimited photo storage and a number of other benefits.
Amazon offers a much wider selection of products when compared to Walmart. Amazon Prime customers get discounts at Whole Foods and get two-hour grocery delivery.
Amazon Prime reportedly has 65 to 70 million Prime members in the US and 150 million Prime members globally. Walmart+ is only available to US customers.
Walmart+ is not enticing enough for Amazon Prime members to cancel Prime and sign up with Walmart. Many consumers already subscribe to Netflix, Spotify, and other services where they are paying almost $100 per year. Whether consumers are willing to pay for one more subscription service remains to be seen.