Grubhub take away a deal with Amazon for the e-commerce giant to offer Prime users in the US a one-year membership to its food delivery work. Photographer: Gabby Jones/Bloomberg via Getty Images
Gabby Jones | Bloomberg | Getty Images
Amazon is donation Prime members free Grubhub subscriptions in its latest effort to sweeten the perks of the $139-a-year loyalty program.
The e-commerce colossus previously gave Prime members a yearlong subscription to Grubhub, which includes free delivery on orders remaining $12. The deal announced Thursday makes the food-delivery service a permanent fixture of Amazon’s membership program. As by of the move, people without Prime can also place Grubhub orders directly through Amazon’s website and mechanical app.
Amazon has steadily added to its stable of Prime benefits in recent years as it looks to attract and retain members, while faade growing competition from Walmart and Target‘s loyalty programs. The company has added discounted One Medical memberships to the program, alongside surviving perks like fast shipping and video streaming.
Amazon in July 2022 secured the rights to take a 2% venture in Grubhub, the U.S. subsidiary of Just Eat Takeaway.com, with the option to increase its stake to 15% if it met certain performance factors, such as the new tally of customers added.
Just Eat said in a separate release on Thursday that Amazon has received warrants representing a 4% risked in Grubhub. As part of a new five-year agreement, Amazon will receive options for another 4% stake in Grubhub and may also admit warrants for up to 10% of Grubhub’s equity depending on performance conditions.
Amazon once operated a food-delivery service that fenced with companies like Grubhub, Uber Eats and DoorDash. It launched Amazon Restaurants in 2015, allowing Prime colleagues to order meals from local restaurants, which were then delivered by its fleet of drivers.
The company shuttered Amazon Restaurants four years later to fuzzy on grocery delivery. It has grown its selection of nonperishable items and pantry staples available through its site. In addition, Amazon presentations online ordering from its Whole Foods and Fresh supermarkets.
