TECH

Walmart Inc. To Launch Its Amazon.com Inc. Prime Rival Program In July

The Walmart Inc. (NYSE:WMT) vs Amazon.com Inc. (NASDAQ:AMZN) competition seems to heat up with Walmart expected to launch its Amazon Prime rival this month.

Walmart launching Amazon Prime rival program

Although Amazon might have had a head start of 15 years, Walmart is finally closing in with its Walmart+ membership program. The Amazon Prime rival program will cost around $98 per year and Walmart expects it to be an alternative for consumers. The new subscription program expected to launch this month will include benefits like same-day delivery for general merchandise and groceries. Equally, subscribers will get early access to deals and discounts for fuelling at Walmart stations.

With the launch, the Walmart vs. Amazon competition is enhanced as each retailer will seek to remain competitive and get more customers. Initially, the company planned to launch the program around April but due to the COVID-19 pandemic, they pushed it back. For now, it is unclear whether the retailer will launch the Amazon Prime rival program nationally or at the regional level first.

Walmart vs. Amazon will be about program subscribers

Walmart is still miles behind Amazon in terms of e-commerce presence in the US. Amazon is valued at around $1.53 trillion while that of Walmart at around $337 billion and the difference is Amazon Prime. The Amazon Prime loyalty program launched in 2005 and currently boasts over 150 million subscribers globally.  Subscription for Amazon Prime per year is $119 and members spend more on Amazon compared to non-prime members.

 The challenge for Walmart in this Walmart vs. Amazon rivalry is that most of its top-spending customers have Amazon Prime subscriptions. Amazon has made the program even more appealing to consumers with less disposable income that previously preferred shopping at Walmart. Interestingly Walmart is also juicing the Amazon Prime rival program with more perks like reserved delivery slots and notifications on open slots and express two-hour delivery.

Bottom line

For now, Walmart is hoping to give Amazon a run for its money in the e-commerce space with the Walmart+ program. It remains to be seen if it will succeed.

By reading our website you agree to the terms of our disclaimer, which are subject to change at any time. Owners and affiliates are not registered or licensed in any jurisdiction whatsoever to provide financial advice or anything of an advisory nature. Always do your own research and/or consult with an investment professional before investing. Low priced stocks are speculative and carry a high degree of risk, so only invest what you can afford to lose. By using our service you agree not to hold us, our editor’s, owners, or staff liable for any damages, financial or otherwise, that may occur due to any action you may take based on the information contained within our newsletters, website, twitter, Facebook or chat. We do not advise any reader to take any specific action. Our releases are for informational and educational purposes only. Never invest purely based on our articles. Gains mentioned on our website, twitter, Facebook, and on our website may be based on EOD or intraday data. We may be compensated for the production, release, and awareness of this article. We will disclose any and all compensation on the article page. This publication and its owner never hold positions in the securities mentioned in our articles. Our information may contain Forward-Looking Statements, which are not guaranteed to materialize due to a variety of factors. We do not guarantee the timeliness, accuracy, or completeness of the information on our site. The information in our disclaimers is subject to change at any time without notice. We are not held liable or responsible for the information in press releases issued by the companies discussed in these write-ups. Please do your own due diligence