Amazon.com (AMZN.O) has announced a significant expansion to its services by integrating Grubhub food delivery directly into its U.S. shopping app and website. This move builds on an existing partnership that provides Amazon Prime members with no-fee access to Grubhub+ membership.
Starting now, Amazon customers in the U.S. can seamlessly order food from Grubhub without leaving the Amazon ecosystem. This enhancement extends the benefits of the ongoing partnership, initially established in 2022 and renewed in 2023, which offers Prime members free access to Grubhub+ membership—a service valued at $120 annually. The membership includes benefits such as free delivery on orders over $12.
“This new deal bundles Grubhub membership with Prime and integrates it on our app and website. Prime members will continue to enjoy these benefits every year as long as they remain subscribed,” Amazon stated.
Prime membership in the U.S. costs $139 annually, offering a plethora of benefits including free delivery on Amazon purchases, gaming perks, discounts on medical prescriptions at nearly 60,000 pharmacies, and access to Amazon Music, Prime Video, and Prime Reading.
Amazon secured the right to acquire a 2% stake in Grubhub in July 2022. In a related development, Just Eat Takeaway, the owner of Grubhub, revealed that Amazon has received warrants representing 4% of Grubhub’s equity. Additionally, Amazon may obtain warrants for up to another 10% of Grubhub’s equity, contingent on meeting certain performance criteria.
“The significant impact of this deal is that it enhances Grubhub’s appeal to potential buyers. Just Eat Takeaway has been looking to sell Grubhub for some time now, shortly after its initial acquisition,” said Sean Kealy, an analyst at Panmure Gordon.
As of 2023, approximately 167 million U.S. customers subscribed to Amazon Prime, accounting for about 71% of all Amazon users in the country, according to data from Statista. This extensive customer base positions Amazon as a major player in the food delivery market, leveraging its vast network to offer integrated services that enhance customer convenience.
This strategic move is part of Amazon’s broader efforts to expand its service offerings and provide added value to Prime members. By incorporating food delivery into its platform, Amazon continues to solidify its position as a comprehensive, one-stop-shop for a wide range of consumer needs.
For more details, read the full article on Reuters.