Amazon Integrates Grubhub Food Delivery into Its U.S. Platform

Amazon has announced a significant enhancement to its services by integrating Grubhub food delivery directly into its shopping app and website for U.S. customers. This move extends the company’s existing deal, offering Prime members no-fee access to Grubhub+ membership.

As part of this agreement, Amazon Prime members can continue to enjoy a free Grubhub+ membership valued at $120 per year. This membership provides free delivery on orders over $12, adding more value to Amazon’s loyalty program.

Our customers in the U.S. can now conveniently order from Grubhub directly on our app and website,” Amazon stated. “Prime members will retain access to the Grubhub+ membership every year as long as they remain with Prime.

Prime membership, which costs $139 annually, already includes a range of benefits such as free delivery, gaming perks, savings on medical prescriptions at nearly 60,000 pharmacies, and access to Amazon Music, Prime Video, and Prime Reading.

This integration follows Amazon’s initial deal with Grubhub’s parent company, Just Eat, in 2022. Initially set for one year, the partnership was extended in 2023. Additionally, Amazon secured a right to purchase a 2% stake in Grubhub in July 2022.

In a related statement, Just Eat Takeaway revealed that Amazon has obtained warrants representing 4% of Grubhub’s equity. Amazon could also receive warrants for up to an additional 10% of Grubhub’s equity based on certain performance criteria.

Sean Kealy, an analyst at Panmure Gordon, commented on the strategic implications of this deal. The significant impact of this deal is that it enhances Grubhub’s appeal to potential buyers. Just Eat Takeaway has been trying to sell Grubhub since shortly after its acquisition, he said.

This integration could potentially increase Grubhub’s user base and usage, making it a more attractive asset for sale.

Amazon Prime continues to be a dominant force in the U.S., with approximately 167 million subscribers in 2023, representing about 71% of all U.S. users, according to Statista.This vast subscriber base provides a substantial potential market for Grubhub’s services, now seamlessly integrated into Amazon’s ecosystem.

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