Amazon Prime members can now add “fuel discounts” to their list of perks, thanks to a new benefit from the e-commerce giant. The latest offering allows Prime subscribers to save 10 cents per gallon at over 7,000 BP, Amoco, and AM/PM gas stations across the United States, potentially saving members up to $70 a year on fuel costs.
To use the discount, Prime members must link their Amazon account to Earnify, a BP-owned loyalty program app.
This new benefit arrives amid volatile global oil prices, driven by conflict in the Middle East, sparking concerns of a potential gas price surge. Although U.S. gas prices are currently at their lowest since January, according to GasBuddy, Amazon’s gas discount aims to provide some relief for Prime’s 184 million subscribers.
An Expanding List of Benefits
The fuel discount is Amazon’s latest addition to an extensive lineup of Prime benefits, which already includes music and video streaming, grocery delivery, and prescription drug discounts. As competition in the membership space increases, Amazon’s move underscores its efforts to maintain its edge.
Amazon’s Strategy to Stay Ahead
Although fuel discounts may seem outside Amazon’s typical domain, analysts say the expansion aligns with its broader strategy. Neil Saunders, retail analyst and managing director at GlobalData Retail, noted that Amazon’s approach has always focused on adding varied benefits to make Prime indispensable.
“Amazon’s view has always been that the more benefits you add and the more rounded you make the program, the more difficult it is to leave,” Saunders told CNN. He added that Amazon likely introduced this benefit to compete with Walmart+, which also offers 10-cent gas discounts at 14,000 U.S. locations.
With new membership programs like Target Circle 360 and Wayfair Rewards emerging, Prime continues enhancing its value to keep subscribers engaged.
“Other retailers are still playing catch-up to Amazon,” Saunders explained. “Amazon is adding features to remain a step ahead.”
Challenges in Amazon’s “Everything Company” Vision
Amazon’s expansion into diverse benefits is not without challenges. Saunders highlighted potential customer confusion, as the program’s breadth may overwhelm some users. Members who use only a few services may not fully benefit from the program, feeling it’s less valuable.
Pricing could also deter some. At $139 per year, Prime costs around 40% more than Walmart+ and Target’s memberships, which are priced at $98 and $99. Customers who do not make full use of Prime’s services might consider switching to lower-priced options.
“Amazon needs to work hard to understand how members use Prime,” Saunders concluded. “They’ll need to ensure it delivers genuine value rather than simply piling on features.”
By adding gas discounts, Amazon demonstrates its commitment to offering more value. As competition intensifies, Prime aims to remain an all-encompassing service that continues to draw in members.
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