According to a report by Reuters and the email updates the company has started sending to users, Amazon is increasing the cost of Prime in the UK from £79 to £95, in France from €49 to €69.90, in Spain and Italy from €36 to €49.90 and in Germany from €69 to €89.90. The increases will take effect from 1 September.
These increases are the first since 2014 and are considered significantly increased as they range from 20% in the UK to 43% in France. As justification, Amazon cited "increased inflation and operating costs" along with faster product delivery and more content delivered with its video streaming service. "We will continue to focus on making Prime even more valuable to our members through faster deliveries and creating more content on our streaming services," the company's UK branch said in an email.
Last quarter, Amazon reported a loss for the first time since 2015 due to slowing growth and higher costs, following a huge boom during the pandemic. The company was also hit due to its investment in electric truck maker Rivian, which it will rely on for cheaper deliveries. To cope with the new realities, the company has promised to increase productivity, but faces a federal investigation into working conditions and other potential hazards at its warehouses.