Walmart is reportedly prepared to step up its online fight with Amazon.com by launching a membership program to compete with the online giant's very successful Prime service.
Investors are totally buying the idea and sent Walmart's stock more than 6 percent higher on Tuesday.
The Walmart subscription service, which will be called Walmart+, according to reporting by tech website Recode, is due to launch later this month at $98 a year. That's about $20 cheaper than the annual fee for Amazon Prime.
But how will Walmart+ stack up when it comes to services? Customers will reportedly get same-day delivery options for groceries and other merchandise, discounts at the retailer's gas stations, and early access to deals. No word yet on whether Walmart+ shoppers will get quicker, free shipping. Right now two-day shipping is free for all customers spending at least $35.
Walmart declined to comment on the report. But it has been making an effort to close the wide gap between its online sales and that of Amazon.com.
Last quarter it set a company record for online sales with a near 75 percent jump in spending on its website... And it recently announced a partnership with Canadian e-commerce firm Shopify in an attempt to capture a bigger slice of online shopping.
It still has a way to go to catch up to Amazon as far as Wall Street is concerned.
Amazon shares were down slightly on Tuesday but held above the marquee $3,000 price tag - giving it a $1.5 trillion stock market valuation. Walmart's market cap is just a fraction of that at nearly $360 billion.