Wal-Mart taking on Amazon Prime

Walmart takes on Amazon Prime

The Associated Press has confirmed that Wal-Mart is planning to rival Amazon Prime with its own subscription shipping service, initially reported by The Information. (Tweet this)

The service is code-named "Tahoe" and is designed to help the company boost its online business and take on other e-commerce giants like

Wal-Mart, the world's largest retailer, told The Associated Press on Wednesday that the shipping subscription service will cost customers $50 a year.

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Products will arrive in three days or less.

Ravi Jariwali, a Wal-Mart spokesman, says the service will be available by invitation only for now and it will offer more than one million top-selling items, from toys to electronic gadgets. Wal-Mart's online site sells more than seven million products.

The service is part of a software overhaul that will span several years. "Tahoe" was supposed to be launched last year before the holiday season, but the company now anticipates a launch in the early summer of this year, according to The Information's report.

AP contributed to this report.