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Amazon Prime members can now enjoy “fuel discounts” as part of their growing list of benefits. This new perk allows members to save 10 cents per gallon on fuel (up to an average savings of nearly $70 annually) at approximately 7,000 participating BP, Amoco, and AM/PM stations across the United States. To access the discount, members need to link their Amazon accounts with Earnify, a loyalty program app by BP.
According to GasBuddy, gas prices are currently at their lowest since January. However, with global oil prices rising due to ongoing conflicts in the Middle East, concerns about potential increases in gasoline prices linger. Amazon's new fuel discount could help mitigate some of this concern for its more than 184 million Prime subscribers.
This fuel discount is the latest addition to the extensive list of benefits offered to Prime members, which also includes music and video streaming, food and grocery delivery, and even savings on medical care and prescription drugs. In an increasingly competitive landscape of membership programs, Amazon aims to maintain its edge.
How Amazon is Keeping Its Edge
While fuel and energy might not be the first sectors associated with Amazon, analysts suggest that the introduction of gas savings isn’t surprising. Neil Saunders, retail analyst and managing director at GlobalData Retail, noted, “Amazon believes that the more benefits it adds and the more comprehensive the program becomes, the harder it is for members to leave.”
Saunders explained to CNN that Amazon’s expansion into gasoline is likely a response to competition from rivals like Walmart+, which also provides 10-cent fuel savings at 14,000 U.S. stations. With more paid membership programs emerging, such as Target Circle 360 and Wayfair’s Wayfair Rewards, Amazon is keen to showcase its value to subscribers.
“Other retailers are trying to catch up to Amazon, and Amazon wants to maintain its lead,” Saunders added. “As competitors add more features, Amazon is doing the same to ensure it stays ahead.”
However, Amazon’s strategy to position itself as the “everything company” poses certain challenges.
For instance, customer confusion can arise. Saunders pointed out that larger programs may become too diffuse, meaning customers who benefit from one service might not utilize others.
Pricing also presents an issue; an annual Prime subscription costs $139, which is roughly 40% more than Walmart and Target memberships, priced at $98 and $99, respectively. Customers who don’t fully utilize their Prime membership might feel they’re not getting good value and may consider switching to a cheaper alternative.
“Amazon will need to carefully analyze how Prime is being used across its various offerings to ensure it provides real value rather than just adding a multitude of features,” Saunders concluded.
Paraphrasing text from "CNN" all rights reserved by the original author.