Amazon.com has announced a new feature allowing U.S. customers to order from Grubhub directly through its shopping app and website. This move extends Amazon’s existing partnership with Grubhub, enhancing the convenience and value of its Prime membership program.
As part of this agreement, Amazon Prime members will continue to enjoy a free Grubhub+ membership, which is valued at $120 per year. This membership includes free delivery on orders over $12, a significant benefit for frequent food delivery users. The integration will be available to Prime members annually, provided they maintain their Prime subscription.
“We are excited to integrate Grubhub into our platform, providing our customers with an even more seamless and convenient experience,” said an Amazon spokesperson. “This extension of our partnership underscores our commitment to delivering value and choice to our Prime members.”
Amazon Prime membership, which costs $139 annually in the U.S., offers a suite of benefits including free delivery, gaming perks, savings on medical prescriptions at nearly 60,000 pharmacies, and access to Amazon Music, Prime Video, and Prime Reading. The addition of Grubhub+ to this package makes Prime membership even more appealing.
In a related statement, Just Eat Takeaway, the owner of Grubhub, mentioned that Amazon has received warrants representing 4% of Grubhub’s equity. Furthermore, Amazon may receive warrants up to an additional 10% based on certain performance conditions. This financial arrangement highlights the deepening ties between the two companies.
“The significant impact of this deal is that it makes Grubhub more attractive to potential buyers,” commented Sean Kealy, an analyst at Panmure Gordon. “Just Eat Takeaway has been attempting to sell Grubhub for some time, and this integration with Amazon enhances its market position.”
This new development follows an initial deal in 2022, where Amazon secured a 2% stake in Grubhub. The partnership was extended in 2023 and now further solidified with this integration. The move is expected to attract more Prime subscribers, with Statista reporting that approximately 167 million Amazon customers in the U.S. were subscribed to Prime in 2023, accounting for about 71% of all users in the country.
Amazon’s strategic move to bundle Grubhub with its Prime membership highlights the company’s efforts to enhance customer loyalty and engagement. By offering more comprehensive services, Amazon continues to solidify its position as a leading e-commerce and digital services provider.
For more details, read the full article on Reuters.