Amazon has announced that U.S. customers can now order food from Grubhub directly through its shopping app and website. This integration is part of an extended deal that continues to offer Prime members complimentary access to Grubhub+ membership.
The partnership, initially struck in 2022 and extended in 2023, now allows Prime members to enjoy a free Grubhub+ membership, valued at $120 per year. This membership includes benefits such as free delivery on orders over $12. Amazon Prime members will continue to receive these benefits “every year thereafter as long as they remain with Prime,” according to Amazon.
The integration of Grubhub with Amazon’s app and website is a significant enhancement for our Prime members,” said Jamil Ghani, Vice President of Amazon Prime. “It provides a seamless experience for ordering food and adds more value to the Prime membership.”
Amazon Prime, which costs $139 annually in the U.S., offers a variety of perks, including free delivery, gaming benefits, discounts on medical prescriptions, and access to Amazon Music, Prime Video, and Prime Reading. The inclusion of Grubhub+ further enhances this robust package of benefits.
This move is part of Amazon’s broader strategy to integrate more services into its ecosystem, making Prime membership even more appealing. In July 2022, Amazon secured the right to buy a 2% stake in Grubhub, and it has since received warrants representing 4% of Grubhub’s equity. Amazon may also receive additional warrants, up to a further 10%, based on specific performance conditions.
Grubhub, owned by Just Eat Takeaway.com, has been a prominent player in the food delivery market. The extended deal with Amazon makes Grubhub more attractive to potential buyers, a crucial point as Just Eat Takeaway has been looking to sell Grubhub since shortly after its acquisition.
“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,” noted Sean Kealy, an analyst at Panmure Gordon.
As of 2023, about 167 million Amazon customers in the U.S. were subscribed to Prime, representing approximately 71% of all users in the country, according to data from Statista. This vast user base underscores the significance of Amazon’s move to integrate Grubhub services directly into its platform, potentially boosting both Prime membership appeal and Grubhub’s market presence.
For more details, read the full article on https://www.reuters.com/technology/amazon-adds-grubhub-food-delivery-its-website-app-us-2024-05-30/
