As Amazon continues to seemingly take over the world with its delivery system, other stores are gearing up in order to stay relevant. Competitors such as Walmart have been trying to come up with ways to stay relevant and avoid getting crushed by the behemoth that is Amazon. In its newest bid to compete, Walmart has announced that it will offer free one-day delivery with orders over $35. This will be applicable for up to 220,000 goods available online.
Walmart locations in Las Vegas and Phoenix are already eligible for this service, and Southern California is next on the list. The retail giant also announced that by the end of the 2019 year, free one-day delivery will be available for around 75% of its locations in the United States. These include 40 out of the 50 largest metropolitan areas.
The move comes after Amazon’s announcement that its Prime members would be able to have the option for free one-day delivery instead of its famous two day delivery. The main difference in the two services is that while Amazon does not require a minimum spend (Walmart will only provide the service for those who have spent over $35), it does require the Prime membership, which costs $119 for an annually. Without the membership, Amazon collects $9.98 per item purchased for same-day delivery.
Another service that Walmart plans to provide is the expanding of its click and collect grocery delivery service. Initially introduced in 2017, the company’s click and collect service will eventually provide same day click and collect services as well.
There is a steep cost for these companies to invest in these services. Amazon is spending about $800 million in order to make these services a reality, while Walmart is investing $215 million to keep up.