Amazon announced on Thursday that its U.S. customers can now place orders directly from Grubhub through its shopping app and website, expanding the agreement that already provides free Grubhub+ membership to its Prime members.
Under the agreement, Amazon Prime members will continue to enjoy free Grubhub+ membership valued at $120 per year, which includes free delivery on orders over $12.
Amazon already offers free Grubhub service to U.S. Prime members. Grubhub is owned by Just Eat Takeaway.com. The original agreement was signed in 2022 for one year, and the two companies extended it in 2023 for another year.
The new agreement bundles Grubhub membership with Prime and integrates it into its app and website. Amazon stated that as long as users maintain their Prime membership, the service will continue to be offered annually.
In the U.S., Prime membership costs $139 per year and includes free delivery, gaming benefits, prescription discounts at nearly 60,000 pharmacies, as well as access to Amazon Music, Prime Video, and Prime Reading.
In July 2022, Amazon gained the right to purchase a 2% stake in Grubhub.
In a separate statement, Just Eat Takeaway said that Amazon has received warrants representing 4% equity in Grubhub and may gain warrants for up to an additional 10% equity in Grubhub based on certain performance conditions.
Panmure Gordon analyst Sean Kealy said, "The significant impact of this agreement is that it makes Grubhub more attractive to potential buyers, as Just Eat Takeaway has been trying to sell it since shortly after the initial acquisition."
According to the data platform Statista, around 167 million U.S. customers subscribed to Amazon Prime in 2023, representing about 71% of all users in the country.
