• 7-Eleven Is Latest US Marketer to Provide Subscription Service

  • 7-Eleven Is Latest US Marketer to Provide Subscription Service

    Add 7-Eleven Inc. to the growing number of fuel marketers that have introduced
    subscription services to lock in business.

    For $5.95 per month, the 7NOW app gets upgraded to 7NOW Gold Pass, a
    subscription delivery service that waives delivery fees on more than 3,000
    7-Eleven products, including fresh food, drinks and groceries. The products
    typically are delivered within 30 minutes, 7-Eleven said in a recent
    announcement.

    7NOW Gold Pass is similar to the subscription services that grocers Albertsons
    and Harris Teeter introduced last year. For an annual $99 fee, the Harris
    Teeter ExpressLane program provides subscribers with free delivery, double fuel
    rewards points, as well as delivery within two hours for orders of at least
    $35. Customers can join Albertsons' FreshPass for $99 per year or $12.99 per
    month. Members get free unlimited delivery for online grocery orders of more
    than $300, as well as a $5 promotional credit and other perks.

    Research firm NPD said subscriptions were already on the rise before the
    COVID-19 pandemic, growing about 17% per year for the previous five years, but
    COVID-19 accelerated that growth. Subscription services helped stabilize and
    increase business, with about 23% of subscription-based enterprises reporting
    growth in subscribers and more than half experiencing no losses during the
    crisis, the firm reported.

    7-Eleven said the 7NOW Gold Pass pays for itself in about three delivery orders
    per month and that there are other perks. Subscribers with a transaction
    subtotaling at least $10 can choose a free product such as a small Slurpee.
    Members of the 7Rewards loyalty program -- who earn and redeem rewards on most
    purchases -- get double rewards when they order delivery with the 7NOW Gold
    Pass. The Gold Pass offers a free trial for the first 14 days, the company
    said.

    "Our 7NOW Gold Pass subscription delivery service brings convenience to a whole
    new level, giving our customers the ability to order what they want, when they
    want it -- and now as often as they want without an added delivery fee," said
    Raghu Mahadevan, 7-Eleven senior vice president and chief digital officer, in
    the announcement.

    7-Eleven said it launched delivery in 2018 through 7NOW. All items available
    for order through the 7NOW app will be available through the 7NOW Gold Pass
    service throughout the U.S. Customers can track orders in real time. The 7NOW
    app can be downloaded from the App Store or Google Play, or by visiting
    7NOW.com.

    Since the onset of the pandemic, convenience-fuel marketers have debuted a
    variety of subscription programs:

    --Southeast fuel marketer RaceTrac in 2020 introduced its RaceTrac Rewards VIP
    program, allowing VIP members to pay $2.49 per month to save 10cts/gal on the
    first 40 gal purchased (3cts/gal thereafter) during the month. The company also
    has a free rewards program promoting repeat business.

    --BP last year rolled out a price match subscription service for members of its
    loyalty club. For 99cts/month BPme Rewards will automatically reward members
    with discounts to match a lower price at a nearby competing gas station.

    --In 2021, Circle K launched the Sip & Save subscription program giving
    subscribers one beverage every day for $5.99/month. Circle K, one of the
    nation's largest car wash chains, also has been piloting car wash
    subscriptions.

    Borrowing a page from c-stores' playbook, publicly held electric vehicle
    charging network EVgo last year introduced its EVgo Rewards loyalty program,
    OPIS reported. Under the program, EV drivers can earn five points for every
    dollar spent on charging sessions with EVgo and have more opportunities to earn
    points toward free charging sessions. A new EVgo Plus subscription program took
    effect nationally in September. EVgo said the EVgo Plus subscription plan
    provides discounted rates and other benefits for heavy users.

    --Reporting by Donna Harris, dharris@opisnet.com; Editing by Barbara Chuck,
    bchuck@opisnet.com




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