Amazon is offering new discounts on gas for Prime members and will help electric vehicle drivers save on vehicle charging in 2025.
Amazon.com Inc (NASDAQ: AMZN) is adding another reason for consumers to sign up for its Amazon Prime membership program as the e-commerce giant intensifies the battle for subscribers against retailer Walmart Inc (NYSE: WMT).
What Happened: Already offering perks like free shipping on millions of items, discounts and a streaming platform membership, Amazon Prime memberships now come with savings at the gas pump.
Amazon announced Prime members will save 10 cents per gallon at around 7,000 BP, Amoco and ampm gas stations across the U.S., stations owned by BP PLC (NYSE: BP).
While the savings are currently only for gas-powered vehicles, Amazon promises that savings for electric vehicle owners are coming. Amazon will offer savings with bp pulse, BP's electric vehicle charging business, beginning in 2025.
"Prime is an incredible value for members," Amazon Prime Vice President Jamil Ghani said. "We're constantly looking to add more value for Prime members and perhaps the broadest and most popular additional benefit we could offer is fuel savings - we're excited to give this to Prime members."
Why It's Important: The latest move from Amazon could be a direct response to the Walmart+ subscription service from Walmart, which offers savings at the pump at Exxon Mobil (NYSE: XOM)-owned gas stations.
Sam's Club and Costco have also offered discounts on gas purchases for years as a way to boost memberships.
While Amazon doesn't regularly break out its number of Prime members, the latest perk could provide a boost to the figure in the coming months.
Amazon recently said its Prime Day two-day October event was record-breaking and led to a record amount of sign-ups for Amazon Prime.
Originally launched as a subscription service to offer free two-day shipping to members, Amazon Prime has grown to include Prime Video streaming, exclusive deals, Amazon Music, discounted prescription medications, unlimited photo storage, free games, a free Grubhub+ membership and more.
The two-day shipping has also improved the free same-day or one-day delivery for millions of items for Prime members.
Amazon Prime costs $14.99 per month or $139 when paid annually. Young adults, college students and consumers on government assistance can receive discounted membership rates.
AMZN Price Action: Amazon stock trades at $186.64 on Thursday versus a 52-week trading range of $118.35 to $201.20. Amazon stock is up 25% year-to-date in 2024.