Walmart plans to launch a membership program with a subscription Walmart+ to better compete with Amazon and its Prime program. According to rumors, the service will cost $98 per year and include unlimited one-day delivery of food and other goods.
Walmart (WMT) plans to launch services on a subscription basis called Walmart + this month, which is similar to the paid program Prime from Amazon (AMZN), which was launched about 4 years ago, and which, according to experts, is a key factor in the success of Amazon in e-Commerce.
Walmart has confirmed plans to launch Walmart+ in February, but did not give details and the exact date of start of the program. According to Recode from Vox, initially, the retailer to plan the launch of the service in late March or April, but postponed it because of the pandemic coronavirus.
Walmart’s shares, is experiencing a strong volatility since the end of February, jumped on news of 6.78% at the close of trading on Tuesday. Amazon shares responded with a decline of 1.86%.
According to sources, the service Walmart + will cost $98 per year and will provide the following services: unlimited one-day delivery of products and goods, discounts on fuel at gas stations and Walmart and so forth. The Walmart also plans to add free content, by analogy with the service from Amazon Prime Video.
Membership Prime Amazon, for its part, already has a wide audience in more than 150 million users worldwide. Prime members pay $12.99 per month or $119 a year in exchange for many benefits, including free shipping, subscription streaming services, Prime Video and Prime Music, as well as a number of discounts.
New technological solutions Walmart a good showing in the first quarter of 2020 the year ended April 30, with the growth of online sales at 74%. The company expanded services one-day delivery and Express delivery.
However, the market share of Walmart ecommerce in USA still accounts for only an eighth of the size of Amazon. Today Amazon is estimated at $1.5 trillion. while the market capitalization of Walmart grew to $360 billion on Tuesday.
Analysts say that the main problem for Walmart + is that Amazon Prime has captured our main target audience for such services, more than half of Walmart’s customers with the highest cost already have a membership to Amazon Prime.
Alternative Walmart should be a really great value and benefit to customers, or to outweigh the offer of Prime from Amazon that seems like an impossible task.
Anyway, for confidence in the success of Walmart + lack understanding, will the consumers pay for both services or will give up Prime in favor of Walmart +.
