Amazon Prime is introducing a new fuel saving benefit

CNN
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Prime members can now add “fuel discounts” to their ever-growing list of benefits.

E-commerce giant Amazon's latest perk lets members save 10 cents per gallon at the pump (up to an average of nearly $70 per) at approximately 7,000 participating BP, Amoco and AM/PM gas stations across the US year).

Members can register You can get the discount by linking your Amazon account to Earnify, a loyalty program app from BP.

Data from GasBuddy shows gas prices are at their lowest level since January, but concerns remain about a possible rise in gasoline prices amid a rise in global oil prices due to the ongoing conflict in the Middle East. Amazon's latest savings perk could ease some of the potential grief for its over 184 million Prime subscribers.

The fuel discount offer is Prime's latest addition to its extensive list of member benefits, which include music and video streaming services, food and grocery delivery, and even medical care and prescription drug savings. And in a world where membership programs now seem virtually ubiquitous, this move represents Amazon's effort to stay one step ahead.

Fuel and energy probably isn't the first sector that comes to mind when you think of Amazon, but analysts say the recent inclusion of gasoline savings isn't too much of a surprise.

“Amazon has always taken the view that the more benefits you add and the more well-rounded you make the program, the harder it is to leave,” said Neil Saunders, retail analyst and managing director at GlobalData Retail.

Saunders told CNN that Amazon's move into gasoline was likely driven by its intention to compete with rival Walmart+, which offers similar 10-cent fuel savings at 14,000 gas stations across the United States.

And as more paid membership programs like Target Circle 360 ​​and Wayfair's recently announced Wayfair Rewards program come to market, Prime is going the extra mile to demonstrate its value to subscribers.

“Other retailers are still trying to catch up with Amazon, and Amazon wants to stay ahead,” Saunders said. “While other retailers are running faster to add more bells and whistles, Amazon is doing the same to maintain its position at the top.”

Still, Amazon's attempt to position itself as an “everything company” comes with its own challenges.

For one thing, there is Customer confusion. According to Saunders, the larger the program, the more diffuse it becomes. Customers who benefit from it The advantage could have no use for another.

Pricing is another problem. An annual Prime subscription costs $139 — that's about 40% more than Walmart and Target memberships, which cost $98 and $99, respectively. Amazon customers who don't use the full extent of their membership may feel like they're getting less for their money and switch to a cheaper alternative.

“Amazon is going to have to work pretty hard to understand how Prime is used across different memberships to make sure it actually adds real value and doesn't just throw out a bunch of stuff,” Saunders said.