Walmart is keen to take on Amazon on the Amazon Prime front. The retail giant is coming up with a membership program, Walmart+, that will offer benefits similar to Amazon Prime, such as free delivery etc. Walmart already has an online grocery delivery service which works on a subscription basis and Walmart+ will be built on that, reported Bloomberg.
Reports state that a Walmart+ subscription could include discounts on prescription drugs and fuel.
Amazon Prime has been a very successful programme for the ecommerce giant and customers in the US pay an annual subscription of $119 to avail free deliveries, along with Prime Video and Amazon Music (compare that with just Rs 999 in India, less than $15).
Walmart would want to break this grip that Amazon has developed and it has been losing customers steadily to the rival. Walmart has not leaned towards loyalty as the founder, Sam Walton, felt all customers must be treated equally.
Walmart has an edge over the competition, including Amazon, in the grocery delivery business in the US. Of the estimated business of $800 billion, Walmart has 20%. Walmart’s brick & mortar stores spread across the US enables the company to make deliveries to their customers’ homes. Walmart will try and build on this in the Walmart+ model and extend the service to include other merchandise. To avail the service Delivery Unlimited, customers have to pay $98 a year.