Amazon follows four key principles: customer obsession, innovation, operational excellence, and long-term planning. With the introduction of fuel discounts at more than 7,000 bp, Amoco, and ampm gas station locations for its Prime members, Amazon seemingly meets all of these goals.

By adding new benefits to its existing subscription model, Amazon can both proactively work to protect its market leadership and also respond reactively to increased pressure from competing subscription services. Notably, Walmart+ has offered a 10-cents-per-gallon savings since 2022 at Exxon, Mobil, Murphy, and Walmart stations.

Considering people’s average fuel usage of 675 gallons per year, Prime and Walmart+ members could save nearly $70 per year on gas. Prime also announced plans to add an electric vehicle charging discount in 2025, in partnership with bp. Although gas price–related benefits are relatively new, they are not the only perks that come with an Amazon Prime subscription. Rather, across the extensive offerings it uses to appeal to and satisfy members—free next-day delivery on most items, exclusive savings during shopping events, exclusive access to certain television shows and movies on Prime Video, ad-free streaming of music and podcasts, discounted prescription medications, discounts on groceries from Whole Foods Market and Amazon Fresh, and a selection of free e-books—Amazon puts into practice its belief that offering more benefits, across more disparate categories, makes it harder for consumers to find an equally valuable alternative subscription model.

As other paid subscription memberships, like Target Circle 360, enter the market at a lower price, Amazon is doubling down on its offerings, Amazon will continue to innovate in an effort to keep coming out ahead.

Discussion Questions 

1. Could the wide range of services offered by an Amazon Prime subscription cause customer confusion?
2. The annual cost of a Prime subscription is $139, as opposed to $98 for Walmart+ or $99 for Target Circle 360. That’s a 40 percent difference. Do the benefits offered by Prime justify this price difference?
3.  Do you have any of these subscription services? What influenced your choice to enroll in one over the others?

Sources: “Amazon Announces New Fuel Savings Offer for Prime Members,” Amazon, October 23, 2024; Erika Tulfo, “Amazon Prime Introduces a New Benefit to Save on Gas,” CNN, October 24, 2024; Ryley Amond, “Save at the Pump with Amazon Prime’s New Gas Discount,” January 3, 2025