Technology

Amazon Adds GrubHub Food Delivery To US Site

By Reuters
Amazon Adds GrubHub Food Delivery To US Site

Amazon informed customers on Thursday that they can now order from GrubHub directly on the shopping app and website.

This extends a deal that already offers Amazon Prime members no-fee access to GrubHub+ membership.

Amazon Prime

As part of the new agreement, Prime members will continue to be eligible for a free GrubHub+ membership worth $120 annually, including free delivery on orders above $12.

Amazon already offers no-fee access to GrubHub, which is owned by Just Eat Takeaway.com, to US Prime members.

The companies initially struck the deal in 2022 for a year. It was then extended for another year in 2023.

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The new deal bundles the GrubHub membership with Prime and integrates it on its app and website.

It will remain available to the loyalty users “every year thereafter as long as they remain with Prime,” according to Amazon.

Prime membership in the US costs $139 a year and includes free Amazon delivery, gaming benefits, savings and discounts on medical prescriptions at nearly 6,000 pharmacies.

It also gives members access to Amazon Music, Prime Video and Prime Reading.

GrubHub

Amazon had secured the right to buy a 2% stake in GrubHub in July 2022.

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In a separate statement, Just Eat said Amazon has received warrants representing 4% of GrubHub’s equity.

It added that the online retailer may also receive warrants up to a further 10% of GrubHub’s equity based on certain performance conditions.

An Analyst at Panmure Gordon Sean Kelly said, “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.”

Just Eat has been exploring the full or partial sale of its struggling GrubHub business since the end of the pandemic boom in 2022.

About 167 million Amazon customers in the US subscribed to Prime in 2023.

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This represents about 71% of all its users in the country, according to data platform Statista.

Read More: Just Eat Takeaway’s Q1 Orders ‘Disappoint’ As Shares Fall

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