Walmart introduces cheaper subscription service to rival Amazon Prime

In a bid to rival Amazon Prime, Walmart is launching a cheaper subscription service called Walmart+, which costs $12.95 a month or $98 a year, compared to $119 for Amazon Prime. On orders exceeding $35, subscribers will get unlimited free deliveries from Walmart's network of 4,700 stores across the US, many of which offer same-day delivery.

Walmart+, which includes a 15-day free trial period, promises more than 160,000 items for same-day delivery, which include fresh groceries, household essentials, and more. In addition to delivery savings, the membership includes fuel discounts of up to five cents per gallon at roughly 2,000 Walmart, Murphy USA, and Murphy Express fuel stations, and the option to shop in-store using Walmart's Scan & Go mobile app. Using this, customers can scan items as they shop and pay through their phone.

Last year, the retail giant tested a similar service named Delivery Unlimited that also offered free grocery deliveries for $98 a year. Existing customers of the service will be inducted into Walmart+.

At launch, Walmart+ isn't offering a wider range of benefits that Amazon Prime offers, including access to Amazon Prime Video, Twitch Prime, Prime Music, and Prime Now, which offers one and two-hour delivery on specific items. Unlike Walmart+, Prime does not have a minimum purchase amount to qualify for free delivery . The retail giant stated that it will add new perks to the service in the coming months.

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