Amazon has expanded its Prime membership benefits by offering the agentic AI assistant, Alexa+, at no additional cost to Prime members in the United States. This move follows a period of significant growth in Prime memberships, marking a strategic push to enhance its subscription offerings.
Details of the New Offering
As part of this initiative, Amazon announced on Tuesday that the Alexa+ service is now available for free to all Prime members. Meanwhile, those without Prime membership can still access the full capabilities of Alexa+ by subscribing for a fee of $19.99 per month. Additionally, a limited, free text-based version of the service is accessible via Alexa.com or the Alexa app.
The introduction of Alexa+ has been met with a positive response, with over 100,000 users embracing the service in its initial weeks earlier this year. During the early access phase, “tens of millions” of users joined, highlighting the strong interest in the AI assistant.
Impact on Membership Growth
The addition of Alexa+ as a Prime benefit coincides with a focus by Amazon and similar retailers on leveraging membership programs to drive sales. In the second quarter of 2026, Amazon reported double-digit growth in Prime memberships, as outlined by Brian Olsavsky, Amazon’s Senior Vice President and CFO, during a July earnings call. He emphasized that Prime remains a fundamental aspect of Amazon’s business model.
Moreover, the introduction of Alexa+ has been a factor in this growth. According to an Amazon earnings release, customers who trialed Alexa+ showed a nearly 25% higher likelihood of signing up for Prime membership. The revenue from Amazon’s subscription services, which include Prime, experienced a 12% increase year-over-year, reaching $13.7 billion.
Comparison with Competitors
The launch of Alexa+ as a complimentary Prime perk takes place soon after Walmart enhanced its own paid loyalty program offerings. Walmart+ members now benefit from 25 complimentary 4×6 photo prints monthly and can waive in-store money service transaction fees once each quarter. This move contributed to strong membership growth, particularly noted in the second quarter of 2026, which Walmart’s Executive Vice President and CFO, John David Rainey, highlighted in a recent earnings call. He pointed out that Walmart+ members significantly boost General Merchandise Volume (GMV), spending approximately four times more than non-members.
Retailers across the board are innovating in their premium loyalty programs. For instance, in July, Dick’s Sporting Goods introduced ScoreCard+, providing members with free shipping, exclusive promotions, a 20% discount on in-store services, and more for an annual fee of $99.
Reporting based on coverage first published by retaildive.com.