Amazon axes free grocery delivery on some Prime orders
Public Ventures President Lou Basenese joins 'Varney & Co.' to discuss the markets and how Microsoft's performance could impact tech and Amazon shares.
Amazon Prime members will no longer get free delivery on some grocery orders starting next month.
Amazon Fresh orders under $150 will no longer qualify for free delivery.
Customers will be charged between $3.95 and $9.95, depending on the order size, the company said in an email to Prime members Friday.
The new policy starts February 28.
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An "Amazon Fresh" delivery truck is seen parked in Brooklyn, New York. (REUTERS/Brendan McDermid / Reuters Photos)
Right now, the company offers members free grocery deliveries on orders above $35, except for New York, where it’s $50.
"We will continue to offer convenient two-hour delivery windows for all orders, and customers in some areas will be able to select a longer, six-hour delivery window for a reduced fee," Amazon said in the email.
An Amazon worker delivers groceries from the Amazon Fresh service in the Brooklyn Borough of New York. (REUTERS/Brendan McDermid / Reuters Photos)
Prime has more than 200 million members worldwide who pay $139 a year, or $14.99 a month.
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Under the new policy, the company said delivery charges will be $3.95 for orders between $100-$150, $6.95 for orders of $50 to $100, and $9.95 for orders under $50. Amazon Fresh deliveries over $150 will remain free.
Amazon Fresh Pickup Store Opens in the Ballard Neighborhood of Seattle, Washington (iStock / iStock)
The move comes as the company looks to trim costs in the current economic environment.
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Amazon joined numerous companies this month, cutting its workforce.
The ecommerce giant announced it has axed unprofitable areas of its business, paused hiring and layed off 18,000 workers.
The Associated Press contributed this report.
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