Some Prime Members to Receive Discounted Rates

Millions of American Amazon Prime members will be eligible for a new discounted rate for their membership. Individuals who are Medicaid recipients will receive a discounted membership rate of $7 per month, as opposed to the regular rate of $12.99 per month. This discount comes less than a year after Amazon announced that it would offer a discounted monthly rate of $5.99 for those who receive government assistance and qualify for programs that include Temporary Assistance for Needy Families, Supplemental Nutrition Assistance Program, and the Woman, Infants, and Children Nutrition Program.

Analysts agree that these lower rates are being implemented in an effort to steal more business away from Walmart. Walmart and now Target are both introducing free two-day shipping, which is what initially made Amazon Prime so popular to many customers. In addition, Walmart and Target’s free shipping is different from Amazon in that it is actually free and doesn’t require a monthly or annual membership.

In other Amazon Prime news, the Vice President of Amazon Prime, Greg Greely, has announced that he will be leaving the company after working there for 18 years. It will be interesting to see whether a new boss will bring additional changes to other aspects of Amazon Prime as we know it.

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