Amazon vs. Walmart: E-commerce giant offers Prime members gas savings and EV charging discounts in latest battle for subscribers – Amazon.com (NASDAQ:AMZN)

Amazon is offering new discounts on gas to Prime members and helping electric vehicle drivers save on vehicle charging in 2025.

Amazon.com Inc AMZN is adding another reason for consumers to sign up for its Amazon Prime membership program as the e-commerce giant ramps up the battle for subscribers against retailers Walmart Inc WMT.

What happened: Amazon Prime memberships already offer perks like free shipping on millions of items, discounts, and a streaming platform membership, and now come with savings at the pump.

Amazon announced that Prime members will save 10 cents per gallon at approximately 7,000 owned BP, Amoco and Ampm gas stations in the United States BP PLC B.P.

While the savings currently only apply to gasoline-powered vehicles, Amazon promises the savings are coming to electric vehicle owners. Amazon is offering savings with bp Pulse, BP's electric vehicle charging business, from 2025.

“Prime is an incredible value proposition for members,” said Amazon Prime Vice President Jamil Ghani said. “We are constantly looking for value for Prime members and perhaps the most comprehensive and popular additional benefit we can offer is fuel savings – we are excited to offer this to Prime members.”

Also Read: Amazon Q2 Earnings Highlights: Revenue Drops, EPS Beat, Q3 Guidance and More

Why it matters: Amazon's latest move could be a direct response to Walmart's Walmart+ subscription service, which offers savings at the pump at Exxon Mobil-owned gas stations.

Sam's Club And Costco have also been offering discounts on gas purchases for years to encourage membership.

Even though Amazon doesn't regularly disclose the number of its Prime members, the latest perk could cause that number to rise in the coming months.

Amazon recently said its two-day Prime Day event in October was record-breaking and resulted in a record number of sign-ups for Amazon Prime.

Originally launched as a subscription service to provide members with free two-day shipping, Amazon Prime has evolved into an offering that includes Prime Video streaming, exclusive deals, Amazon Music, discounted prescription drugs, unlimited photo storage, free games, a free Grubhub+ membership and includes more.

Two-day shipping has also improved free same-day or same-day delivery on millions of items for Prime members.

Amazon Prime costs $14.99 per month or $139 if paid annually. Young adults, students and consumers receiving government assistance can receive reduced membership fees.

AMZN price action: Amazon shares are trading at $186.64 on Thursday, compared with a 52-week trading range of $118.35 to $201.20. Amazon shares are up 25% year-to-date in 2024.

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