Wal-Mart is preparing to launch a subscription service for speedy-shipping to take on Amazon’s $US99-per-year Prime service, The Information’s Amir Efrati reports.
The service would reportedly cost less than Amazon Prime, but wouldn’t include Amazon’s features like free video and music streaming — at least at first.
Wal-Mart already offers same-day grocery delivery in five cities and lets shoppers buy things online and then pick them up in stores, but this would be a big move that would require more infrastructure.
In its Q4 earnings in February, Wal-Mart said that the company will have four new distribution centres across the US open for shipping soon.
Sources tell Efrati that Wal-Mart’s service is codenamed “Tahoe,” and that it was originally pegged to launch before the 2014 winter holidays. Now, it’s on track to launch early this summer.
A Prime-like service could help Wal-Mart boost its e-commerce sales, which are growing slower than Amazon’s.
But, it doesn’t sound like the company plans on investing too much in this new service.
“It’s not a bet-the-company thing, something that we think will change everything,” one source told Efrati.
Separately, eBay is also reportedly testing its own Prime-like service, which would give customers free, next-day shipping on certain products.
Read the rest of The Information’s story here.
Business Insider reached out to Amazon and Wal-Mart for comment.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.