US multinational retail corporation Walmart has announced to launch a long-discussed membership programme, Walmart+, to provide free delivery and compete directly with Amazon’s popular “Prime” service, reported AFP.

Walmart+, starting September 15, will cost $98 annually or $12.95 a month and will provide free delivery as soon as the same day along with discounts on fuel and other features.

“Life feels more complicated than ever. Walmart+ is designed to make it easier — giving customers an option not to have to sacrifice on cost or convenience,” said Janey Whiteside, chief customer officer at Walmart.

The new service will replace the retail giant’s ‘Delivery Unlimited’ subscription service that offered home delivery of more than 160,000 items. Customers can also get up to five cents a gallon at Walmart gasoline stations with the new venue. It will allow users to use “scan and go” feature that lets consumers pay for items by scanning them with a smartphone application. The latter feature offers a “quick, easy, touch-free payment experience,” Walmart said on its website.

Both Amazon and Walmart have grown strong during the coronavirus pandemic as consumers have increasingly relied on e-commerce to order groceries.

An advantage that Walmart has over Amazon was its status as an “essential” store that was permitted to stay open during spring lockdowns.

Last month, Walmart reported higher quarterly earnings, due partly to a 97% surge in US e-commerce sales.