March 7 (UPI) — Amazon announced plans Wednesday to slash the monthly cost of Prime membership for Medicaid recipients.
The new discount slashes the membership cost from $12.99 to $5.99 per month.
Amazon said it’s offering the promotion for up to four years.
Getting more Prime members could financially benefit Amazon, as subscribers already spend an average of $1,700 per year — compared to just $700 for non-Prime shoppers.
“This is just about our customers and our members and giving them the best of Amazon with an incredible selection of benefits. We’re really customer-focused and not competitor-focused,” Amazon program leader Aaron Perrine said, adding that the company is aiming for “lifetime Prime members.”
The new discount program expands upon a discount service from Amazon last summer that gave subscribers with a valid EBT card — a card used in government assistance programs — access to cheaper membership.
“The ability to order things online and have them shipped directly to your door within a quick time frame, people in higher earning demographics have long seen this as a convenience that changes the way they shop,” Avi Greengart, an industry analyst with GlobalData, told USA Today.
“People that this opportunity are targeting are going to get that chance for the first time — and they may actually need it more.”