Walmart Makes Convenience Play, Combining Subscription Programs

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Walmart is adding its in-home delivery service an option for Walmart+ subscribers, making it easier for them to access the service through a single registration as it expands to a number of new markets, the company announced.

At the same time, Amazon announced that Prime members can sign up for a free year of food deliveries from struggling GrubHub, as the ecommerce giant has an option to take a 2% stake in GrubHub parent Just Eat Takeaway, which is looking to sell the company.

“The agreement is expected to expand membership to Grubhub+, while having a neutral impact on Grubhub’s 2022 earnings and cash flow, and be earnings and cash flow accretive for Grubhub from 2023 onwards,” the company said in announcing the deal.

Walmart is adding InHome services in Miami, Tampa, Orlando, Dallas, Austin, San Jose and San Francisco, roughly doubling its coverage. The company plans to make the service available to 30 million U.S. households this year, up 5x from 6 million in January.

“When Walmart+ members ask for something, we work around the clock to make it happen for them,” said Chris Cracchiolo, Senior Vice President and General Manager of Walmart+ in a release. “Our members want options and a shopping experience that is easy to navigate and accommodates their individual needs, while saving them time and money—this is true now more than ever.”

Subscribers to Walmart+, which runs $12.95 per month or $98 per year can add unlimited home deliveries for an additional $7 a month or $40 per year. This is $10 less than the separate annual subscriptions cost. Shoppers can opt to have their groceries delivered to their door or right into their refrigerator.

Walmart launched InHome in October 2019, starting in Pittsburgh, Vero Beach, FL and Kansas City. Amazon began offering its in-home delivery service in 2018, as Walmart began trialing it. Walmart+, its answer to Amazon Prime, launched in 2020.

Delivery associates for InHome use smart entry technology and a proprietary, wearable camera to access customer’s homes, allowing them to both control access and view deliveries remotely to address security concerns.