Amazon.com (AMZN.O) announced on Thursday that U.S. customers can now order from Grubhub directly through its shopping app and website, expanding a deal that already provides Prime members with no-fee access to Grubhub+ membership.
Under the agreement, Amazon Prime members will continue to enjoy a free Grubhub+ membership valued at $120 annually, which includes free delivery on orders over $12.
Amazon has been offering no-fee access to Grubhub, owned by Just Eat Takeaway.com (TKWY.AS), to U.S. Prime members since the initial deal was established for a year in 2022 and extended for another year in 2023. The new arrangement bundles Grubhub membership with Prime and integrates it into Amazon’s app and website. It will be available to loyalty users “every year thereafter as long as they remain with Prime,” according to Amazon.
Prime membership in the U.S., costing $139 annually, includes free delivery, gaming benefits, savings and discounts on prescriptions at nearly 60,000 pharmacies, and access to Amazon Music, Prime Video, and Prime Reading.
In July 2022, Amazon secured the right to acquire a 2% stake in Grubhub. Just Eat Takeaway, in a separate statement, mentioned that Amazon has received warrants representing 4% of Grubhub’s equity and may receive up to an additional 10% of Grubhub’s equity based on certain performance conditions.
“The significant impact of this deal is that it makes Grubhub more appealing to potential buyers, as Just Eat Takeaway has been looking to sell it since shortly after its initial acquisition,” said Sean Kealy, an analyst at Panmure Gordon.
Approximately 167 million Amazon customers in the U.S. subscribed to Prime in 2023, representing around 71% of all users in the country, according to data platform Statista.
