In a move to enhance its delivery capabilities during the holiday season, Walmart WMT is rolling out new financial incentives for its independent delivery drivers. This initiative is part of Walmart’s broader strategy to improve the efficiency of online order deliveries from its U.S. stores to customers’ homes.

What Happened: Josh Havens, a spokesperson for Walmart, confirmed that the company is offering incentives and increased earning opportunities for its current drivers. However, specific details regarding these incentives were not disclosed, Reuters reported on Friday.

Walmart’s strategy aims to attract upper-income households and compete with Jeff Bezos‘ Amazon.com AMZN. The retailer leverages the Spark Driver app, enabling freelance drivers to deliver goods directly from stores, thereby boosting e-commerce sales and Walmart Plus subscriptions.

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In addition, Walmart has slashed the Walmart Plus membership fee by 50% for the holiday season, offering it for $49 until Dec. 2. This move is anticipated to increase membership to 32 million by year-end, according to Emarketer. Meanwhile, Amazon offers a $99.99 fast grocery delivery service for its Prime members, who pay $139 annually.

Why It Matters: The competition between Walmart and Amazon has intensified, with both companies vying for a larger share of the grocery market. In September, Amazon expanded its Prime member benefits, offering significant discounts at Amazon Fresh stores. This move made grocery shopping more affordable and convenient for Prime members.

In October, Amazon further enhanced its Prime membership by offering gas savings and EV charging discounts, intensifying the battle for subscribers against Walmart.

Earlier in June, Walmart announced enhancements to its Walmart+ membership program, offering perks like free shipping, store delivery, and fuel savings, positioning it as a competitive alternative to Amazon Prime.

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Image courtesy of Walmart, Inc.

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari