Amazon adds Grubhub food delivery to its website, app in the US

FILE PHOTO: Figurines with computers and smartphones are seen in front of an Amazon logo in this illustration taken Feb. 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

(Refiles to fix syntax in paragraph 7)

(Reuters) on Thursday said its customers in the U.S. can now order from Grubhub directly on its shopping app and the website, extending a deal that already offers its Prime members a no-fee access to Grubhub+ membership.

As part of the agreement, Amazon Prime members will continue to be eligible to avail a free Grubhub+ membership worth $120 a year, which includes free delivery on orders above $12.

Amazon already offers no-fee access to Grubhub, which is owned by Just Eat, to U.S. Prime members. The initial deal was struck for a year in 2022 and then the companies extended it for a year in 2023.

The new deal bundles the Grubhub membership with Prime and integrates it on its app and the website. It will remain available to the loyalty users "every year thereafter as long as they remain with Prime," Amazon said.

Prime membership in the U.S. costs $139 a year and includes free delivery, gaming benefits, savings and discounts on medical prescriptions at nearly 60,000 pharmacies, access to Amazon Music, Prime Video and Prime Reading.

Amazon had secured the right to buy a 2% stake in Grubhub in July 2022.

In a separate statement, JustEat Takewaway said Amazon has received warrants representing 4% of Grubhub's equity and may also receive warrants up to a further 10% of Grubhub’s equity based on certain 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, an analyst at Panmure Gordon, said.

About 167 million Amazon customers in the U.S. subscribed to Prime in 2023, representing approximately 71% of all users in the country, according to data platform Statista.

(Reporting by Utkarsh Shetti, Shubham Kalia in Bengaluru and Piotr Lipinski; Editing by Nivedita Bhattacharjee)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!


Next In Tech News

Users will have control over generative AI in Windows
Will your device support Apple Intelligence?
Gamers really are better drivers, a new survey reveals
From schoolwork to relationship advice: why might young people use an AI chatbot?
OpenAI CEO says company could become benefit corporation- The Information
Google loses bid to end US antitrust case over digital advertising
Apple, Meta set to face EU charges under landmark tech rules, sources say
New York recovers $50 million for defrauded Gemini Earn crypto investors
Tempus AI shares jump 8% in strong Nasdaq debut as US IPO market thaws
Meta pauses AI models launch in Europe due to Irish request

Others Also Read