Gasoline Discounts Fuel Latest Amazon-Walmart Competition Clash

In today’s competitive retail arena, Amazon stepped up its game by announcing that Prime membership will now include fuel savings, allowing members to save up to 10 cents per gallon at participating gas stations. This initiative from Amazon comes four years after Walmart introduced similar fuel savings in its Walmart+ loyalty program and increased discounts in 2022. As both giants vie for consumer loyalty, this latest move by Amazon signifies a strategic effort to increase the value of Prime membership amid rising fuel prices and heightened competition.

Amazon’s new fuel savings initiative not only enhances its Prime offering but taps into a growing trend: consumers are increasingly looking for ways to save on essential expenses like gasoline. Consider the PYMNTS Intelligence report, Installment Plans Becoming a Key Part of Shopper’s Toolkit, reveals that among the roughly 60% of consumers who used some type of installment payment plan in the 12 months before being surveyed, nearly 24% did so to purchase gasoline, or 15% of all consumers.

This indicates fuel is not just an occasional expense, but a regular budget consideration for many households. With Prime members now able to save nearly $70 per year on gas, Amazon is positioning itself as a key player in the essential needs market.

Consider the PYMNTS Intelligence study, Consumer Inflation Sentiment Report: Higher Prices Fuel a Deal-Seeking Competition, which found 72% of consumers who bought a retail product in the past 30 days cited price and discounts as key factors influencing their choice of where to shop.

The back and forth between Amazon and Walmart isn’t limited to just fuel discounts. Here’s a look at notable developments from Amazon and Walmart in the past week:

Amazon Highlights

• Elevating Financial Services: Q2 Holdings announced an expanded partnership with Amazon Web Services (AWS) to enhance innovation for banks, credit unions and FinTech companies. This collaboration, which also involves Presidio, aims to increase the adoption of AWS technologies, including generative AI, to power Q2’s digital banking products like the Q2 Innovation Studio.
• AI-Driven Patient Care: Amazon One Medical introduced new AI tools to improve patient care and enhance the overall healthcare experience. These innovations are designed to streamline administrative tasks, allowing healthcare providers to focus more on patient interactions. The AI capabilities include features like predictive analytics to identify potential health issues and automated scheduling to minimize wait times. The launch of these tools reflects Amazon One Medical’s commitment to integrating technology into healthcare, making it more efficient and accessible.

Walmart Highlights

• Streamlined Delivery Services: Walmart launched a new delivery service that integrates prescription medications with general merchandise, allowing customers to receive both in a single order. Currently available in six states — Arkansas, Missouri, New York, Nevada, South Carolina and Wisconsin — the service is expected to expand to 49 states by January 2025. This initiative addresses the needs of busy families and individuals managing chronic conditions, providing them with the convenience of having their medications and everyday items delivered together. The new offering aims to improve access to healthcare while allowing pharmacists to focus on high-touch services in their communities, promoting healthier lives for customers.
• Pokémon GO Gift Cards: Walmart is at the forefront of a new initiative in Pokémon GO, where players can send and receive gift cards directly through the app, enhancing the game’s social experience. This feature allows players to purchase gift cards for various retailers, including Walmart, and share them with friends, promoting community engagement and encouraging exploration of local businesses. By integrating gift cards into gameplay, Pokémon GO creates connections among players and provides opportunities to find new locations and rewards.