Amazon.com has announced that its U.S. customers can now order from Grubhub directly through its shopping app and website, further solidifying the partnership between the two companies. This integration extends the benefits already available to Amazon Prime members, who enjoy no-fee access to Grubhub+ membership.
As part of this expanded agreement, Amazon Prime members in the U.S. will continue to receive a free Grubhub+ membership, valued at $120 annually, which offers free delivery on orders over $12. This benefit will remain available to Prime members for as long as they maintain their subscription.
Amazon’s Prime membership, which costs $139 per year, provides a range of benefits beyond free delivery. These include gaming perks, discounts on medical prescriptions at nearly 60,000 pharmacies, and access to Amazon Music, Prime Video, and Prime Reading. The inclusion of Grubhub+ enhances the value proposition for Prime members, making it a more comprehensive offering.
Amazon’s partnership with Grubhub, owned by Just Eat Takeaway.com, began in 2022 with an initial one-year deal. The companies renewed the agreement in 2023, and the latest deal integrates Grubhub services into Amazon’s app and website. This move is expected to be highly beneficial for Grubhub, making it more appealing to potential buyers as Just Eat Takeaway has been looking to sell the company since shortly after acquiring it.
“The important impact of this deal is that it makes GrubHub more attractive to a potential buyer, as Just Eat Takeaway has been attempting to sell it for some time now – since shortly after it made the initial acquisition,” said Sean Kealy, an analyst at Panmure Gordon.
In July 2022, Amazon secured the right to buy a 2% stake in Grubhub. According to a separate statement from Just Eat Takeaway, Amazon has received warrants representing 4% of Grubhub’s equity and may receive additional warrants up to a further 10%, contingent on certain performance conditions.
With approximately 167 million Amazon Prime subscribers in the U.S. in 2023, representing about 71% of all U.S. users, this integration with Grubhub is expected to drive significant engagement and usage. The move underscores Amazon’s strategy of continually enhancing the value of its Prime membership, ensuring customer loyalty and satisfaction.
For more details, read the full article on Reuters.