Walmart takes on Amazon Prime with new subscription service

Walmart is launching an online membership service featuring free shipping from stores, a direct shot at Amazon’s lucrative Prime service.

Walmart’s new service, called Walmart+, will cost $98 per year or $13 per month, the company announced on Tuesday.

The plan includes free shipping and same-day delivery for groceries and certain items from stories. Other perks include discounts on gas at Walmart gas stations and skip the checkout line by paying using the mobile app.

The new membership service is cheaper than Amazon Prime, which clocks in at $119 per year, though Amazon’s plan offers more perks at the moment.

“Customers know they can trust us and depend on us, and we’ve designed this program as the ultimate life hack for them,” Walmart Chief Customer Officer Janey Whiteside said in a statement. “Life feels more complicated than ever. Walmart+ is designed to make it easier — giving customers an option to not have to sacrifice on cost or convenience. We know shopping should fit customers’ needs, not the other way around.”

Walmart+ will replace Delivery Unlimited, the company’s previous attempt at a free shipping membership plan. Current Delivery Unlimited subscribers will automatically be switched over to become Walmart+ members.

The company said it plans to add more features to the new membership plan over time.

While Walmart+ lacks some of the amenities of Amazon Prime — such as access to a comprehensive video and music streaming library — Walmart said same-day delivery will be available for many items from its thousands of stores, beating Amazon’s shipping speeds in some cases.

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