Amazon.com, on Thursday, announced that U.S. customers may now buy from Grubhub directly on its shopping app and website, expanding an agreement that currently gives Prime members free Grubhub+ membership
By the agreement, Amazon Prime members will maintain their eligibility for a complimentary Grubhub+ membership for an annual period of $120. This membership entails complimentary shipping on orders exceeding $12.
U.S. Prime members already have complimentary access to Grubhub, owned by Just Eat Takeaway.com. The parties initially agreed to a one-year agreement in 2022, which they subsequently renewed for another year in 2023.
The new agreement incorporates Prime with Grubhub memberships and integrates them on the platform’s website and app. Amazon stated that it will continue to be accessible to Prime members “every year after that” for the duration of their membership.
Access to Amazon Music, Prime Video, and Prime Reading, as well as free shipping, gaming privileges, and savings and discounts on medical prescriptions at nearly 60,000 pharmacies, are all included in the $139 annual membership fee for Amazon Prime in the United States.
In July 2022, Amazon acquired the option to purchase a 2% stake in Grubhub.
JustEat Takeaway stated in a separate statement that Amazon has been granted warrants equivalent to 4% of Grubhub’s equity, with the possibility of obtaining warrants worth an additional 10% of Grubhub’s contingent upon specific performance conditions.
“The important impact of this deal is that it makes GrubHub more attractive to a potential buyer, as Just Eat Takeaway has been attempting to sell it for some time now – since shortly after it made the initial acquisition,” Sean Kealy, a research analyst at Panmure Gordon, stated.
According to data platform Statista, approximately 167 million Amazon consumers in the United States were Prime subscribers in 2023, representing approximately 71% of all users in the country.