Brits face significant Amazon Prime subscription price rise
Amazon is hiking the price of its Prime service for UK customers.
From September, monthly subscriptions will go up £1 to £8.99 and annual membership will increase from £79 to £95.
The price rise, Amazon’s first in the UK since 2014, is partly due to inflation, which is at a 40-year high.
Retail analyst Natalie Berg said in a LinkedIn post: “it's an incredibly bold move to increase fees smack in the middle of the worst cost of living crisis in a generation. But to many shoppers, Prime is indispensable.”
“Don't forget we are in a K-shaped crisis and the typical Prime member tends to skew more affluent. Most won't blink an eye. They're too wedded to the brand and the wider ecosystem.”
She added: A fee hike was inevitable given recent investment in Prime (ie. digital content and "free" same-day grocery delivery which Amazon launched during the pandemic).”
“The strength of this bundle proposition makes it easier for Amazon to drive member adoption and retention - especially at a time when everyone is cancelling their Netflix subs!”
“But it's not cheap. Plus cost of shipping and labour shortages driving wage inflation. Something had to give. And this fee hike won't be the last.”
“A significant milestone in our Climate Pledge commitment”
Customers across the US are now beginning to see custom electric delivery vehicles from Rivian delivering their Amazon packages, with the EVs hitting the road in the likes of Baltimore, Chicago, Dallas, Kansas City, Nashville, Phoenix, San Diego, Seattle, and St. Louis.
The aim is to have thousands of these vehicles in more than 100 cities by the end of this year, and 100,000 across the US by 2030.
This is the product of Amazon’s partnership with Rivian, which the companies announced in 2019 when the former co-founded, and became the first signatory of The Climate Pledge.
“Fighting the effects of climate change requires constant innovation and action, and Amazon is partnering with companies who share our passion for inventing new ways to minimise our impact on the environment,” says Andy Jassy, CEO at Amazon.
“Rivian has been an excellent partner in that mission, and we’re excited to see our first custom electric delivery vehicles on the road.”
“This marks a significant milestone in our Climate Pledge commitment. Rivian was one of the first companies Amazon invested in through the Climate Pledge Fund, and we’re just getting started on our journey to have 100,000 of Rivian’s vehicles on the road by 2030.”
“And, in addition to being sustainable, these new vehicles are also great for drivers. They were designed with driver input and feedback along the way, and they’re among the safest and most comfortable delivery vehicles on the road today.”
