Delivery Startups Diversify With Credit Cards: Instacart and DoorDash are gearing up to launch branded credit cards which will reward frequent users.

Amazon Prime Coming Soon to Third-Party Sites

$1 Billion Venture

Amazon’s (AMZN) “Prime” membership provides its customers with fast, free shipping, as well as access to entertainment such as music and videos, some of which is free to members. The service, launched in 2005, has been popular: there are currently over 200 million members world-wide. The cost to join has tracked higher over the years, with the most recent price increase in February 2022, bringing the annual cost up to $139.

The company recently announced plans to invest $1 billion to build out their fulfillment, supply-chain, and logistics. A related move will expand its Prime services to online merchants outside of Amazon, through those companies’ own websites.

Threat to Incumbents

Amazon’s plans are unlikely to be well received by delivery service operators like FedEx (FDX) and UPS (UPS). As the retailing giant continues to invest in fulfillment and logistics, all while extending its reach with third party merchants, Amazon will increasingly compete with the world’s delivery and parcel companies.

Andy Jassy, Amazon’s CEO, recently noted that these plans signal a desire to invest in worker safety as well as innovation. Initially, in 2022, the program will be offered by invitation only to select retailers who already sell on Amazon’s platform. Eventually the initiative will be rolled out to other, off-site merchants.

Consumer Impact

The new service, called “Buy With Prime” will allow online sellers to lean on Amazon’s fulfillment and payment infrastructure in order to provide a better customer experience. These third-party sites will display the Prime logo and offer fast delivery, which will also arguably make Prime membership more valuable.

For online shoppers, the expanded options may just be what it takes to entice them to swallow the ever-increasing Prime membership price tag. They may enjoy the flexibility of having more places to shop online, all while continuing to benefit from Amazon’s speedy fulfillment and delivery.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

James Flippin ABOUT James Flippin James Flippin is the son of a financial advisor who grew up hearing and learning about bond yields, interest rates, the stock market, and the ins and outs of Wall Street. After stints as a licensing and business broker for Marcus and Millichap in New York City, James moved into broadcasting and became a reporter and anchor. He covered crime, politics, finance, and tech at NBC News Radio while working part-time as a producer for SiriusXM. James graduated from the University of Delaware with a bachelor’s degree in political science and economics. He's also an accomplished podcaster with over 10-years of experience.

TLS 1.2 Encrypted
Equal Housing Lender