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Can Walmart's Delivery Pass Subscription Deliver Value?

Walmart is launching Delivery Pass in Canada.


For just $89 per year (or $8.97 per month), Delivery Pass subscribers get free next-day delivery from stores with a minimum order value of $35 (before taxes & fees).


And... that's pretty much it, actually.


But the chart below sure does a nice job of making it seem like a lot more, doesn't it?

A list of Walmart Delivery Pass benefits

According to the press release, "Ottawa-based customers can sign up for and access Delivery Pass as of today. Toronto, Montreal and Vancouver launches will follow before the program rolls out across the country later this summer."


Let's compare this new subscription contender to the delivery subscription heavyweight champion, Amazon Prime:


✅ Pros:

  • At $89 / year, Delivery Pass is $10 / year less expensive than Amazon.

  • With Walmart, I can get fresh groceries delivered, something I can't (yet?) get with Amazon in Canada. (Amazon, when is Amazon Fresh coming to Canada??)


❌ Cons:

  • Delivery Pass gets you free next-day delivery. But Amazon Prime gets you free delivery, free entertainment (via Amazon Prime Video, included with the membership fee), free music (Amazon Music, also included), free photo storage backup, free Prime Reading... well, you get the idea.

  • Walmart claims consumers will get access to over 65,000 products. That's a lot. But compared to Amazon's speculation? Even with the third-party vendors on Walmart's platform, Walmart's selection simply can't compete with "the Everything Store".


Companies love subscription services because they represent consistent, predictable, recurring revenue.


But think about how many subscriptions you already have.


(Amazon Prime? Netflix? AppleTV+? Disney+? Parmount+? Spotify? Peloton? Master Class? Duolingo? Grammarly? The list is probably longer than you realize... or perhaps than you care to admit.)


Now ask yourself this: what would make you take on another one?


What kind of value would you need to justify another monthly charge on your credit card?


And will Walmart Delivery Pass deliver that type of value for you?


My wife and I use Walmart Click-and-Collect 3-4 times weekly, so the thought of having our groceries delivered right to our door is certainly appealing.


But the thought of paying for yet ANOTHER subscription is not.


At least, not until they offer a lot more than free delivery for $89.99 a year.


A friendly Walmart Delivery Pass delivery person waving goodbye to a father and son after having dropped off their grocery order.
 

P.S. Walmart, if you're reading this and want to work together to figure out how to make Delivery Pass more compelling, I'm just a contact form away.

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