Amazon will increase Prime service prices by up to 43% per year in Europe

Amazon.com will raise the price of its Prime delivery and streaming service in Europe by as much as 43% a year, the retailer said on Monday, days before reporting quarterly financial results.

Amazon customers in Germany, the company’s second-biggest market after the United States, will see Prime annual subscription fees rise by 30% to €89.90.

The company’s third market, the UK, will see a 20% increase to £95, while Amazon sites covering Spain, Italy and France will charge Prime members between 39% and 43% more annually.

The changes will take effect from September 15, when new members join the service or renew their plans.

Amazon cited “increasing inflation and operating costs” as well as faster delivery and more content for the streaming service in a statement about the price increases, the first since 2018 for some of the countries. “We will continue to work to ensure Prime offers exceptional value to members,” he said.

In April, Amazon posted its first quarterly loss in seven years due to headwinds including higher wages, rising gas costs and an unrealized loss of its stake in Rivian Automotive.

In the quarter ended in June, the value of this investment fell by another US$ 4 billion. Ford, also an investor in Rivian, recently sold some of its shares in the company.

Amazon said it remains committed to working with Rivian, “an important partner” that will help it get thousands of electric delivery vans on US roads in 2022.

Analysts, on average, expect net income of $1.38 billion for Amazon’s quarterly results, according to data compiled by Refinitiv’s IBES. The company discloses its balance sheet on Thursday.