Amazon.com has announced that U.S. customers can now order from Grubhub directly through its shopping app and website. This extension of their existing partnership enhances the convenience for Amazon Prime members, who already enjoy no-fee access to Grubhub+ membership.
Under the new agreement, Amazon Prime members will continue to benefit from a complimentary Grubhub+ membership valued at $120 per year. This membership includes free delivery on orders over $12, further incentivizing Prime customers to use Grubhub for their food delivery needs.
“This integration simplifies the food ordering process for our customers by bundling it with the services they already love and use regularly,” Amazon stated. “Prime members can enjoy these benefits every year as long as they remain subscribed to Prime.”
Amazon Prime membership, which costs $139 annually, offers a wide range of benefits including free delivery, gaming perks, discounts on prescriptions at nearly 60,000 pharmacies, and access to Amazon Music, Prime Video, and Prime Reading. The new Grubhub integration adds to these extensive perks, making Prime membership even more attractive.
Amazon initially secured no-fee access to Grubhub for U.S. Prime members in 2022, with an agreement that was extended in 2023. As part of the deal, Amazon also acquired the right to purchase a 2% stake in Grubhub. In a recent development, Just Eat Takeaway, the parent company of Grubhub, announced that Amazon has received warrants representing 4% of Grubhub’s equity and could potentially receive up to an additional 10% based on specific performance conditions.
“The significant impact of this deal is that it enhances GrubHub’s appeal to potential buyers. Just Eat Takeaway has been seeking to sell Grubhub since shortly after its initial acquisition,” noted Sean Kealy, an analyst at Panmure Gordon.
The integration with Amazon’s platform could provide a substantial boost to Grubhub, making it a more compelling acquisition target. In 2023, approximately 167 million U.S. customers subscribed to Amazon Prime, representing around 71% of all users in the country, according to data from Statista.
This strategic move aligns with Amazon’s broader goal of enhancing the value proposition for its Prime members while simultaneously leveraging its extensive customer base to drive growth for partner companies.
For more details, read the full article on Reuters.