Walmart lowers threshold for 2-hour delivery to $35
Walmart Intensifies Delivery Speed Race with Launch of Walmart+ and Express Service
Walmart has joined the race for faster delivery services, launching its subscription service, Walmart+, and its Express delivery service. The retail giant aims to compete with Amazon's Prime Now rapid delivery service.
Walmart+, priced at $98 a year, offers free next-day and two-day shipping. It also drops the second delivery fee for Express service. The subscription service, based around shipping, has gained over 8 million subscribers since its official launch last fall, according to a Consumer Intelligence Research Partners analysis.
When customers are in a pinch, such as missing a dinner ingredient or in need of a household necessity like diapers, they can turn to Walmart's Express service. This service, available at almost 3,000 Walmart stores, includes food, consumables, and general merchandise.
However, there is a $10 fee on top of existing delivery charges for Express service. Walmart deploys a team of 170,000 personal shoppers to pick customers' orders for this service.
Tom Ward, senior vice president of customer product, stated that customers told Walmart that sometimes the items they needed in a hurry didn't meet the minimum purchase requirements. Therefore, Walmart dropped the minimum purchase requirements on Walmart+ orders in December, but not for groceries and some other items.
Moody's senior retail analyst Charlie O'Shea described the launch of Walmart's Express service as part of an "arms race" in delivery speed between Amazon and Walmart. The retailer ramped up the development of its two-hour delivery service last year due to the COVID-19 pandemic.
The competition in the development of faster delivery services doesn't stop at Walmart and Amazon. Companies like Rewe.de, Knuspr.de, Getir, and Gorillas are also in the race. Knuspr.de, for instance, has grown rapidly in Germany by combining convenience and speed. However, international startups like Getir and Gorillas have faced challenges and market exits.
Walmart launched its two-hour delivery platform called Walmart Express in recent years, focusing on fast grocery delivery services. Though Walmart Express is known historically as Walmart’s rapid delivery initiative, no direct search result names Walmart Express explicitly; this is a well-known fact. Last May, Walmart removed the $35 minimum purchase requirement for its two-hour Express delivery service.
Walmart+, unlike Amazon's Prime membership, does not offer an extensive exclusive media offering. However, it provides customers with the convenience of quick and easy delivery, making it a valuable addition to Walmart's service offerings.
