e-commerce
Amazon hikes Prime membership fees in US
Mumbai: Amazon has hiked the subscription fees for Prime membership in the US. The announcement was made during the fourth quarter financial results for 2021 held on Thursday. The company has raised annual prices from $119 to $139 and monthly prices from $12.99 to $14.99.
This is Amazon’s first price increase in four years and will go into effect on 18 February. However, the hike does not apply to the Amazon standalone Prime Video option that continues to be offered at $8.99 per month. Recently, the company hiked Prime membership fees in India from Rs 999 to Rs 1499.
When asked whether the company intends to hike prices in other markets, Amazon chief financial officer Brian Olsavsky replied, “We look at the relative price to the customer versus our cost to supply that and the usage and the value that we’re creating for customers. We felt, especially after not raising the price in the United States since 2018 that the time was right to raise it. And we think it’s a much more valuable program today than it was in 2020, let alone 2018. So, other countries, we’ll continue to evaluate every year and nothing else to announce right now.”
In April 2021, Amazon shared that it had about 200 million Prime members worldwide. While in the fourth quarter, the management team at the company did not share an updated guidance on the number of prime users, Olsavsky said, “On the consumer side, we welcomed millions of new Prime members in both the United States and international during the quarter, while continuing to see consistently high member renewal rates across geographies.”
Amazon has tripled its original releases since 2018 and will release its anticipated series ‘The Lord of The Rings: The Rings of Power’ series in September this year. Prime Video debuted 28 local originals internationally including India in the fourth quarter. The OTT platform also saw its strongest viewership for live sports globally during the quarter. Notably, Prime Video made its foray into live sports in India by streaming cricket matches between New Zealand and Bangladesh in the fourth quarter.
e-commerce
Flipkart rolls out 105 per cent bonus for 20,000 employees
Strong FY25 performance drives payouts even as layoffs and shifts unfold.
MUMBAI: In a year where belts were tightened and rewards loosened, Flipkart seems to be playing both offence and defence trimming roles on one hand while handing out a generous 105 per cent bonus on the other. The Walmart owned e commerce major has rolled out a 105 per cent bonus payout for 2025, covering nearly 20,000 employees, signalling a year of steady operational momentum even as the company navigates restructuring pressures. The payout, communicated internally by chief human resources officer Seema Nair, is tied to performance across key metrics including growth, operational efficiency, financial outcomes and people indicators, a combination that suggests the company is inching closer to its long stated goal of sustainable profitability.
Employees at SD level and below are set to receive their bonuses in March, while payouts for senior leadership, including vice presidents and senior vice presidents, will follow after the close of the performance cycle. The elevated 105 per cent multiplier stands out in a sector where cautious payouts have increasingly become the norm, pointing to what appears to be a relatively strong internal scorecard for FY25.
Yet, the announcement arrives with a noticeable contrast. Earlier this year, Flipkart reduced its workforce by around 300 roles as part of its annual performance review process. While officially framed as performance driven, the juxtaposition of layoffs alongside above target bonuses reflects a more nuanced balancing act, one that prioritises cost discipline while continuing to reward and retain high performing talent.
This dual approach is becoming increasingly common across the technology and e commerce landscape, where companies are navigating an uneven hiring environment while under pressure to deliver profitability. Rewarding top contributors, even amid selective workforce reductions, allows firms to maintain morale and retain critical talent without losing sight of financial prudence.
At the same time, Flipkart is also undergoing leadership shifts that hint at a broader strategic recalibration. Nishant Verman has been appointed senior vice president for corporate development and partnerships, while group chief financial officer Sriram Venkataraman is set to step down. Ravi Iyer will take on expanded responsibilities within the finance function, marking a reshuffle at the top as the company gears up for its next phase.
These changes come amid reports that Flipkart is planning to shift its holding structure back to India, a move widely interpreted as groundwork for a potential public listing. While timelines remain fluid, the combination of stronger financial discipline, leadership restructuring and employee incentivisation suggests a company preparing itself for greater scrutiny and scale.
For employees, the 105 per cent payout offers a welcome boost in what has otherwise been a period of adjustment. For Flipkart, it is a signal that even as it cuts where necessary, it is willing to spend where it counts. In the high stakes game of growth versus profitability, the company appears to be hedging its bets carefully, rewarding performance while reshaping itself for what could be its most defining chapter yet.
