Walmart is launching an early morning delivery service to keep up with Target and Amazon
Walmart is launching an early morning delivery service as the big-box retailer aims to keep up with its rivals Target and Amazon.
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Tom Ward, executive vice president of Walmart U.S., said on Thursday the early morning delivery service will include two options. The “morning express options” will be available to all customers, including those that are not part of the retailer’s loyalty program, Walmart+.
The first daybreak delivery option is priced at $10 per trip and applies to customers that want items delivered in an hour or as soon as 30 minutes, according to a company statement. Customers, however, will have to place their orders at 6 am local time, Ward said. The second option will cost $5 and promises to deliver items in about three hours.
Ward, who shared the news with Axios, said there will be a base delivery fee for customers that are not Walmart+ members. Walmart+ members will still have to pay the $10 fee for the early morning express option, should they want their items delivered between that one hour or less window, a Walmart spokesperson told Quartz.
Arkansas-based Walmart likened the announcement to daylights saving time, which is scheduled to take place on Sunday, March 10 in the U.S. Ward said it’s the retailer’s way of giving customers more “time back.”
But the new early morning delivery service is likely much more influenced by Walmart’s bid to stay competitive as Target and Amazon ramp up their respective loyalty programs to keep up with consumer demand.
Walmart’s Ward said that the early morning delivery service comes at a time when “people’s expectations keep growing,” and that it is the retailer’s way of meeting customers “where they’re at.” The company plans to use its 4,700 U.S. locations as fulfillment centers.
Walmart already offers free same-day delivery service for orders over $35, but only to its Walmart+ members. The loyalty program is $12.95 per month, about $98 a year.
Just this week, Target announced it would launch Target 360 Circle. The paid membership, which will be available on April 7, includes same-day delivery in as little as one hour too, for unlimited orders over $35.
E-commerce giant Amazon offers free same-day delivery to its Prime members. Its membership is priced at $14.99 per month, about $139 a year, and includes discounts at select grocery stores as well.
