Amazon has teamed up with Grubhub to provide free food delivery to Prime members of a select restaurant.
Amazon is offering free food delivery to some restaurants in some cities.
Amazon Prime subscribers now have access to the meal delivery service Grubhub, meaning they won’t have to pay delivery fees for a year under a deal announced Wednesday.
Amazon Prime membership costs in U.S $139 per year, and Grubhub Plus membership costs $9.99 per month. Now Amazon Prime membership customers order from thousands of restaurants with no delivery fees on most orders.
To enjoy this service all Amazon Prime members sign up for the Grubhub service. Every prime member will take benifit of this service one year, they will be charged Grubhub’s normal fees unless they deactivate the program.
This deal is done on Wedenesday 6 July 2022 between Amzone and Just Eat Takeaway (Amsterdam-based delivery company) that bought Grubhub in 2020 for $7.3 billion. Amazon has an initial option to take a 2% stake in Grubhub, which could increase to 15% if certain performance conditions are meet.
According to market research firm YipitData, Grubhub was the U.S. market share leader as recently as January 2019, when it controlled 31% of food delivery sales. due to DoorDash and Uber Eats offering discounted service and rapidly expanding into suburbs As of May, Grubhub controlled 11% of sales, while DoorDash held 57% and Uber Eats had 31%.
Grubhub was hurt by expense covers that many urban areas set up to help cafes during the pandemic. It is likewise confronting claims in Chicago and Massachusetts, where authorities have blamed the organization for tricky works, including publicizing conveyance administrations for eateries without their assent.
Grubhub has denied the charges. In any case, they have been a migraine for Just Eat Takeaway, which reported in April it was thinking about the half or full offer of Grubhub. Simply Eat Takeaway said Wednesday it keeps on investigating that deal.
Just Eat Takeaway said the agreement will have a neutral impact on Grubhub’s 2022 earnings but will be reflected in its results starting next year. The partnership will automatically renew each year unless Amazon or Grubhub cancels it.
In a statement, Grubhub CEO Adam DeWitt said he’s confident the offering will expose many new diners to Grubhub delivery. Grubhub said its research shows that more than half of U.S. adults consider takeout or delivery food “essential,” but only 38% say they use third-party delivery companies.
Amazon said in a statement that the deal makes Amazon Prime membership even more valuable. Amazon has more than 200 million Prime members worldwide; most are based in the U.S.
Just Eat Takeaway shares surged 15% on the Amsterdam stock exchange on the news. DoorDash shares fell 7% on the New York Stock Exchange.