Amazon.com has announced a significant enhancement for its U.S. customers: they can now order from Grubhub directly through Amazon’s shopping app and website. This integration builds upon an existing deal that provides Amazon Prime members with no-fee access to Grubhub+ membership.
As part of the updated agreement, Amazon Prime members will continue to enjoy the benefits of a free Grubhub+ membership, valued at $120 per year. This membership includes perks like free delivery on orders over $12. The partnership initially began in 2022, offering U.S. Prime members complimentary access to Grubhub. The companies extended this arrangement in 2023, and the latest deal further solidifies this collaboration by embedding Grubhub services directly within Amazon’s digital ecosystem.
“Prime members will have uninterrupted access to Grubhub+ every year thereafter as long as they remain with Prime,” Amazon stated. This seamless integration aims to enhance the value of Prime membership, which costs $139 annually and already offers a plethora of benefits including free delivery, gaming perks, discounts on medical prescriptions, and access to Amazon Music, Prime Video, and Prime Reading.
In addition to these membership benefits, Amazon had secured rights to purchase a 2% stake in Grubhub in July 2022. Just Eat Takeaway, Grubhub’s parent company, has disclosed that Amazon has received warrants representing 4% of Grubhub’s equity and could obtain additional warrants for up to 10% of the equity, contingent upon certain performance metrics.
The strategic move by Amazon to integrate Grubhub is also seen as a potential booster for Grubhub’s attractiveness to prospective buyers. “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,” noted Sean Kealy, an analyst at Panmure Gordon.
With about 167 million U.S. customers subscribed to Amazon Prime in 2023, accounting for approximately 71% of all users in the country, this integration significantly expands Grubhub’s reach and potential customer base.
The seamless incorporation of food delivery into Amazon’s platform is a notable development in the e-commerce giant’s strategy to offer a comprehensive range of services under one roof.
For more details, read the full article on Reuters.
