Walmart to Launch Subscription Service Rivaling Amazon Prime | Financial Buzz

Walmart to Launch Subscription Service Rivaling Amazon Prime

Walmart (NYSE: WMT) is going head to head with Amazon Prime as it prepares to launch Walmart+, its own paid membership service, according to a Vox’s Recode report. The membership is set to cost USD98 a year and will provide same-day delivery of groceries, discounts at selected gas stations and special access to deals. 

The multinational retail giant had planned to commence the service back in March or April but had to postpone plans amid the coronavirus pandemic. Although it is unknown if the program will premier nationwide, Walmart+ is now planned to launch in July. A company spokesperson declined to comment. 

Amazon Prime, which currently has more than 150 million subscribers, has successfully operated for 15 years. With a yearly fee of USD119, the company has managed to get their members to shop with more frequency. The overall service provides amazon shoppers quick and free shipping, admission to its streaming network and reduced prices at Amazon-owned grocery store Whole Foods.

Walmart has been a step behind Amazon when it comes to the e-commerce market. It strives to catch up in market share and market cap. Amazon is currently worth USD1.5 Trillion while Walmart is valued at USD358 Billion. 

Though most of Walmart’s big spending customers now have Amazon Prime, its online sales skyrocketed 37% throughout the year, exceeding its own expectations. During the first fiscal quarter ending April 30, online sales rose 74%, as a consequence of an overall increase in online shopping amid COVID-19. 

Additionally Walmart now offers a delivery service, Express Delivery, that brings customers their purchases for a USD10 cost.