Amazon's Prime subscription service may have some serious competition by the end of July. A new report claims that Walmart will be launching its own service later this month. The service's name will be Walmart+ and it will provide similar benefits to Amazon Prime. It will also offer those services at a similar price. Walmart+ is said to have an annual subscription price of $98. However, these details have yet to be officially confirmed by Walmart itself.
The report comes from Vox's Recode, which also provided some examples of the benefits available to Walmart+ subscribers. Boons include same-day delivery of Walmart groceries and goods. Alone, this would be an upgrade over Amazon Prime's 2-day delivery and lack of robust grocery delivery in all but certain targeted areas. Walmart+ will also offer discounts at Walmart gas stations, which could prove worth the subscription's value by itself.
Walmart+ will also offer unique access to product discounts, an aspect of the service that's certain to be the major component of the service. Amazon Prime does offer early access to certain daily deals or sales events, but discounts have decreased or have been removed altogether over the past several years. Video game fans specifically miss Amazon Prime's 20% discount on new games.
One other interesting benefit, according to the report, is that Walmart+ will offer some kind of video service. Walmart doesn't currently own any video service, so exactly what kind of product or partnership Walmart is planning to offer isn't clear.
If Walmart+ does end up launching later this month, it does so at a moment where discontent with Amazon Prime is increasing rapidly. The COVID-19 pandemic has been particularly impactful on Amazon's service. Many products are in very limited capacity, discounts are rare, and delivery times are radically longer than the 2-days promised by the subscription service. That's not to say that Amazon's struggles are understandable. It's just that if Walmart doesn't have the same struggles, it's certain to be immediately competitive.
The appeal of Walmart+ should be immediately apparent, given the usefulness of grocery delivery in the midst of the pandemic. The price, $98, will prove the contentious point. Subscribers will buy in if they feel like they're getting a good value out of it. And that will depend on the other discounts and benefits Walmart will offer which have yet to be revealed. Expect Walmart to explain those soon.
Source: Recode