Amazon Prime Members Now Have Grubhub+ Free for One Year A new partnership was announced as a part of Amazon's Prime Day deals.
By Emily Rella
Opinions expressed by BIZ Experiences contributors are their own.
Amazon Prime is known for its convenience and efficiency when it comes to delivering goods, streaming video, and ordering groceries.
Starting today, per a new acquisition of part of food delivery service Grubhub, Prime members will have access to another convenient delivery service: Free Grubhub+ for a year.
The online retail giant will buy into a 2% stake in meal delivery service Grubhub, which is owned by the European parent company, Just Eat Takeaway. Grubhub is a U.S.-based food delivery platform.
The new deal was announced as a part of Prime Day promotions for Amazon and revealed that Prime members will have access to the delivery's premium service Grubhub+ via their Prime accounts for one full year, which will grant them free delivery on all orders over $12.
Related: Amazon Prime Day Deals to Grab (And What To Pass On)
"I am incredibly excited to announce this collaboration with Amazon that will help Grubhub continue to deliver on our long-standing mission to connect more diners with local restaurants," Adam DeWitt, CEO of Grubhub said in a company release. "Amazon has redefined convenience with Prime and we're confident this offering will expose many new diners to the value of Grubhub+ while driving more business to our restaurant partners and drivers."
The agreement will automatically renew each year provided that neither Amazon nor Grubhub chooses to terminate the contract. The agreement will also allow for Amazon to take an additional 13% stake in the company (15% total) based on "the satisfaction of certain performance conditions", namely dependent on how many new Grubhub+ customers are added to the service through Amazon's new partnership.
Grubhub's primary competitors are U.S.-based food delivery services Uber Eats and DoorDash, both of which fell Wednesday morning in pre-trading (3% and 7%, respectively) upon the news. It was also reported that Just Eat Takeaway was soaring over 17% in Europe markets at the same time.
This won't be the first time Amazon has experimented with food delivery services for customers. Back in 2021, the online behemoth teamed up with European-based food delivery service Deliveroo and offered one year of free delivery on all orders over $34 to Prime members based in the U.K. and Ireland. Amazon had previously invested in the company two years prior.
It's estimated that Amazon currently has over 160 million Prime subscribers, with that number projected to reach 176 million within the next three years.
Amazon remained flat in a 24-hour period upon news of the new partnership, though the company was down over 28% in a one-year period at the same time.
