Walmart Announces Membership Service to Compete with Amazon Prime

By Kurt Stolz on 1 September 2020
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A delivery from Whole Foods, now an Amazon subsidiary

Walmart, the world’s largest company by revenue, announced Walmart+, a new membership service designed to compete with Amazon Prime.

The new offering will give customers free shipping on tens of thousands of items – far fewer than Walmart sells on its main website – including groceries and fresh produce. It will cost $98 per year, a price lower than the $119 Amazon charges for Amazon Prime.  A key difference is that Walmart+ will require a $35 minimum order in order to qualify for free shipping while Amazon Prime has no such minimum.

“We are developing a product that is grounded in meeting customers’ needs,” Janey Whiteside, said Walmart’s chief customer officer, on conference call with reporters on Monday.

Another key difference between the two is that Amazon includes other benefits including Prime Video, a video-on-demand service that includes critically recognized original programming and tens of thousands of movies and television programs, and Prime Music, a service that competes with Apple Music and Spotify.

Members of the new Walmart+ service will also receive a 5-cent-per-gallon discount at affiliated filling stations.

Walmart, which was founded in 1962 by Sam Walton, has 11,496 stores in 27 countries and annual revenue of $524 billion, based on 2020 figures.

(Photo: Accura Media Group)

Accura News

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