Amazon makes Grubhub a fixture of its Prime membership program, while Walmart announces a member-exclusive sale

The news: Amazon is embedding Grubhub within and the Amazon Shopping app, while offering members of its Prime membership program a free subscription to Grubhub+ (which normally costs about $120 annually).

  • Amazon previously offered Prime members a free one-year Grubhub+ membership, which automatically renewed at full price.

Why it matters: Prime membership has a relatively low churn rate because Amazon regularly expands the array of benefits consumers receive for paying a $139 annual fee.

Walmart’s play: Walmart is borrowing a page from its chief competitor as it announced its summer member-exclusive sale: Walmart+ Week will take place from June 17 to 23.

  • During the event the retailer will offer a slew of perks including: double the fuel discount it offers at Exxon and Mobil stations nationwide to 20 cents per gallon; up to 20% back in Walmart Cash on flights, hotels, car rentals, and other activities booked through Walmart+ Travel; free Express Delivery; three free months of Walmart+ InHome; and access to exclusive new and unique items.
  • Walmart+—which we forecast 16 million US households belong to—has gained traction by offering free delivery on low-cost groceries, along with other benefits such as discounts on gas and auto repair, and access to Paramount+.
  • While Walmart (along with other retailers) has long sought to counter Amazon’s annual Prime Day sale with its own events, Walmart is taking the confident position of hosting its event ahead of Amazon’s, which will take place some time in July.

The big takeaway: Amid additional growing competition from Target and Uber, Amazon and Walmart aim to reinforce the value of their membership programs.

First Published on May 30, 2024