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

Just Eat Takeaway.com NV

30/05/2024 08:58

(Adds details, background from paragraph 2)
       May 30 (Reuters) - Amazon.com  AMZN.O  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 Takeaway.com  TKWY.AS , 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.and may also receive warrants up to a further 10% of
Grubhub’s 
    In a separate statement, JustEat Takewaway said Amazon has
received warrants representing 4% of Grubhub's equity 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)
 ((UtkarshUmesh.Shetti@thomsonreuters.com;))