Amazon Prime aims to assist you in reducing your fuel expenses.
The fresh advantage from e-commerce titan Amazon includes a cent-saving per gallon at gas pumps (around $68 annually, on average) for approximately 7,000 participating BP, Amoco, and AM/PM stations across the USA.
Users can enjoy this perk by connecting their Amazon account to Earnify, a loyalty program app by BP.
Recent data from GasBuddy shows gas prices at their lowest since January, but global oil prices are escalating due to Middle East conflict-related tensions, leading to concerns about a potential surge in gasoline prices. Amazon's newest benefit might lessen this potential financial burden for its 184 million Prime subscribers.
This gas discount is the latest addition to Prime's extensive list of member benefits, which includes music and video streaming services, food and grocery delivery, and even medical care and prescription drug savings. In the era where membership programs are popping up everywhere, this move represents Amazon's efforts to maintain its edge.
How Amazon outshines its peers
Fuel and energy might not be the first thing that comes to mind when thinking about Amazon, but experts argue that the inclusion of gas savings is unsurprising.
As Neil Saunders, retail analyst and managing director at GlobalData Retail, puts it, the more advantages you add to the program, the harder it is to abandon.
Saunders believes that Amazon's decision to venture into gasoline is driven by a desire to outdo its competitor, Walmart+, which offers an equivalent 10-cent fuel discount at 14,000 U.S. stations.
With the growing trend of paid membership programs like Target Circle 360 and Wayfair's newly introduced Wayfair Rewards, Prime is striving to demonstrate its worth to subscribers.
“Other retailers are lagging behind Amazon, and Amazon wants to stay ahead,” Saunders said. “So, as other retailers rush to add more perks, Amazon is matching their pace to maintain its position at the front.”
However, Amazon's ambition to become the 'everything company' is not without challenges.
For instance, customer confusion can arise from the program's sprawl. According to Saunders, the larger the program, the more scattered it becomes. Customers who utilize one benefit might not find use for another.
Price is another hurdle. An annual Prime subscription costs $139, which is significantly higher than Walmart and Target's membership fees of $98 and $99 respectively. Prime customers who don't fully utilize their membership might begin to question the value of their higher investment.
“Amazon will have to work diligently to comprehend how Prime is being utilized across different memberships to ensure it is truly offering value rather than just throwing out a multitude of perks,” Saunders said.
This gas discount is part of Amazon's strategy to surpass Walmart+, which offers a similar fuel discount at more U.S. stations. (follows from: Saunders believes that Amazon's decision to venture into gasoline is driven by a desire to outdo its competitor, Walmart+)
The inclusion of gas savings in Prime benefits demonstrates Amazon's efforts to maintain its position as a leader in the era of paid membership programs. (follows from: In the era where membership programs are popping up everywhere, this move represents Amazon's efforts to maintain its edge.)
