Walmart announced Thursday that it is launching a new unlimited grocery delivery subscription service this fall in an effort to challenge Amazon and other competitors who offer similar services.
The new service will charge subscribers an annual fee of $98, or a monthly fee of $12.95 for same-day grocery delivery, requiring a minimum order amount of $30, according to a company statement.
The delivery service will be offered from 1,400 Walmart stores, in 200 distinct markets, and is projected to reach 1,600 stores by the end of the year, accommodating 50% of the country, the statement said.
“Grocery Delivery takes convenience to a new level, and our customers love it. With Delivery Unlimited, we’re providing incredible value for our customers and leveraging our unique assets to save them both time and money,” Janey Whiteside, Walmarts Chief Customer Officer, said.
Here’s how Walmart’s grocery delivery subscription service will work. https://t.co/UB7UxCYmAB
— NBC Los Angeles (@NBCLA) September 12, 2019
Fresh food delivery is one of the fastest growing e-commerce industries, according to the Associated Press.
“We know this level of convenience resonates,” Tom Ward, Senior Vice President of Digital Operations at Walmart U.S. said, according to the Associated Press.”If you need milk, bananas and birthday presents, this is a fantastic solution,” he continued.
Walmart is facing fierce competition from its long standing rival, Amazon, in the arena of fresh grocery delivery. Amazon purchased Whole Food Market Inc. two years ago and now offers same day food delivery in several cities, according to the Associated Press. Amazon’s delivery subscription service, AmazonFresh, costs $14.99 a month and is available to Amazon Prime subscribers.
Another grocery delivery service, Shipt, who is partnered with Costco and Piggly Wigglyand was purchased by Target in December 2017, charges subscribers $99 annually for same-day-delivery fresh food, according to CNBC.
The Daily Caller News Foundation reached out to Walmart for a comment but they did not respond by the time of publishing.
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