Walmart following fee model of Amazon for new grocery delivery option

Walmart is launching its own version of grocery delivery subscriptions, called “Delivery Unlimited.” The service allows shoppers to pay $12.95 per month or $98 a year to cover their grocery delivery services. Without the subscription, shoppers pay a $9.95 delivery fee for each order. The money is collected at the time the order is made.

The $98 price is competitive to the industry with Amazon’s Prime subscription of $119 per year and Instacart’s annual fee of $99.

Walmart said the process for ordering is still the same. The subscription option just gives consumers another way to pay for the service which is now available at roughly 1,000 locations. The retailer also offers free grocery pickup at more than 2,450 stores. Walmart is expanding those services to 1,600 stores offering delivery and 3,100 offering pickup by the end of 2019.

Walmart’s announcement comes on the heels of Target’s revamp of its delivery options. Through Shipt, which Target acquired in 2017, the retailer said it will begin offering same-day delivery on grocery items as other day-to-day needs. Target said the same-day delivery is available on more than 65,000 items, including groceries. Consumers with a Shipt membership that costs $99 per year can get the same-day delivery.

This launch of Shipt at Target.com is the first time consumers without a Shipt membership can take advantage of the same-day delivery. The fee for non-members is $9.99 per order. Target REDCard holders can save 5% on purchases for same-day delivery.