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Amazon hikes minimum online grocery delivery fee

Yahoo Finance Live anchors discuss news that Amazon will hike its grocery delivery fee starting February 28.

Video transcript

[AUDIO LOGO]

BRAD SMITH: Amazon Prime members will now have to pay a little more for grocery deliveries. The tech giant announced that starting February 28, Amazon Prime members will have to pay as much as $9.95 in delivery fees for orders under $150. Now, that can start to add up if you're placing multiple delivery-- grocery delivery orders over the course of a week.

[CLOCK TICKING]

JULIE HYMAN: Well, it's a big jump too because the minimum used to be $35 for you to get free orders.

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BRAD SMITH: Oh, OK.

JULIE HYMAN: Now, you're going up to $150. I mean, it's not too hard to-- as someone who feeds-- has a very hungry household. It's not too hard to get up to $150, especially at a Whole Foods. But still, it's big change.

BRIAN SOZZI: Well, I think the read through here is that, you know, there is likely another membership fee hike for Prime members coming. And this maybe this is them floating a trial balloon out there, that is Amazon, to see if the consumers are willing to ultimately pay higher prices. What is it? $140 a year, I think.

JULIE HYMAN: $139, yes, I think that's what it is. I mean, listen, it's expensive to do grocery delivery. The economics of that are challenging. You have the people who are shopping in the store so you have to pay. You have then the drivers you have to pay.

BRIAN SOZZI: We've been spoiled. We've been spoiled if you're this food delivery. I mean $35 threshold for a shipment. I mean, that's been pretty good. That's a good deal.

BRAD SMITH: Where's the autonomous delivery? That's what Amazon had told us was the future and I'm still expecting to see--

BRIAN SOZZI: Future's not here yet, friend.

BRAD SMITH: --robots rolling around autonomously.

JULIE HYMAN: I bet it won't be any cheaper, though.

[BUZZER]

BRAD SMITH: No.

BRIAN SOZZI: Probably more expensive.