Amazon and Grubhub have formed a partnership, allowing prime members to access Grubhub deliveries. Under the agreement, Amazon Prime members can sign up for Grubhub+ and get unlimited deliveries at no charge for a year.
“Both Grubhub and Amazon have transformed people’s lives by providing them with unprecedented choice and convenience,” said Ariella Kurshan, senior vice president of growth at Grubhub. “With the new Grubhub and Amazon offering, Prime members now can enjoy free delivery from hundreds of thousands of restaurants across the country when they sign up for a year of free Grubhub+. I’m thrilled that new Grubhub diners from Amazon can get even more delivered to their door with their Prime membership.”
The announcement is an interesting partnership. Grubhub has only a small percentage of the U.S. food delivery market, and its parent company, Just Eat Takeaway, has looked at selling the delivery company. At the same time, Amazon wants greater access to the food space. The company has tried multiple avenues since purchasing Whole Foods.
“Being able to give Prime members one year of Grubhub+ and no delivery fees from restaurants is our way of saying ‘thank you,’” Amazon Prime Vice President Jamil Ghani said. “The value of a Prime membership continues to grow with this offer, and this year is shaping up to be a great time to enjoy the convenience, savings, fun — and deliciousness — that membership provides.”
Under the terms of the deal, Amazon has an option to take a 2% stake in Grubhub. Under certain conditions, Amazon can take up to a 15% stake in Grubhub.
Amazon touts around 200 million Amazon Prime members. The company increased the cost of Prime membership in early 2022. The cost of a monthly membership went from $12.99 to $14.99 and the annual membership went from $119 to $139. The deal with Grubhub is one more added benefit aimed at keeping Prime members.
