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Amazon ends a program that lets Prime members share free shipping perk with users outside household

An Amazon Prime logo appears on the side of a delivery van as it departs an Amazon Warehouse location in Dedham, Mass., Oct. 1, 2020. (AP Photo/Steven Senne, File)

Key Points

  • Amazon is discontinuing the Prime Invitee program, which allowed Prime members to share their free shipping benefits with those outside their household, effective October 1.
  • The program will be replaced by Amazon Family, enabling account holders to share perks with one other adult in their household and up to four teens and children profiles.
  • Prime membership costs $14.99 monthly or $139 annually for members in the U.S.
  • This change occurs as Amazon makes substantial investments to enhance delivery capabilities in less densely populated areas across the U.S.
  • MarketBeat previews top five stocks to own in October.

NEW YORK (AP) — Amazon is ending a program that allows members of its Prime membership subscription program to share their free shipping benefits with people who don't have the same primary address.

In an update to the customer service section of its website, the online behemoth says it will eliminate the sharing on Oct. 1 and is encouraging users outside the household of the account holder to sign up for their own Prime subscription.

Amazon is encouraging users who don’t live with the account holder to subscribe to their own membership at a discounted rate of $14.99 for one year. After that, it's $14.99 per month or $139 annually. The offer starts this Friday and is valid until Dec. 31, 2025.

Amazon is replacing the so-called Prime Invitee program with Amazon Family, which lets account holders share the free two-day shipping perk as well as a broad range of other perks like exclusive deals and movies with only one other adult in their household, up to four teens (who were added before April 7) and up to four profiles for children, according to Amazon's website. Amazon said that the adult could be a spouse, family member or roommate.

The news comes as the Seattle-based company is making big investments in expanding its network to bring faster delivery to customers in less densely populated areas across the U.S. The service is available in 1,000 of the more than 4,000 smaller cities, towns and rural communities targeted by year-end, the company said in late July.

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