Amazon Backs Grubhub in New Deal

Amazon is taking a bite out of Grubhub as it continues to widen its already-big omnichannel presence. A new agreement between the retail behemoth and Grubhub parent company Just Eat Takeaway gives Amazon the option to buy a 2% state in the Grubhub business unit.

Because of this deal, Amazon Prime members in the U.S. can now sign up for the Grubhub+ service for a year’s worth of free deliveries from thousands of restaurants. In addition, members can access other Grubhub+ perks and rewards. The Grubhub+ membership program is typically priced at $9.99 per month.

Company executives said that the agreement reflects current market dynamics and opportunities to elevate both organizations. “Both Grubhub and Amazon have transformed people’s lives by providing them with unprecedented choice and convenience,” said Ariella Kurshan, SVP of growth at Grubhub. “With the new Grubhub and Amazon offering, Prime members now can enjoy free delivery from hundreds of thousands of restaurants across the country, when they sign up for a year of free Grubhub+. I’m thrilled that new Grubhub diners from Amazon can get even more delivered to their door with their Prime membership.”

Jamil Ghani, VP of Amazon Prime, said that backing Grubhub is a win-win: “Being able to give Prime members one year of Grubhub+ and no delivery fees from restaurants is our way of saying ‘thank you.’ The value of a Prime membership continues to grow with this offer, and this year is shaping up to be a great time to enjoy the convenience, savings, fun — and deliciousness — that membership provides.”

Amazon is diversifying into this aspect delivery at a time when a majority of consumers say that buying takeout and delivery food is essential to the way they live. The company aims to help Grubhub close the gap between intent and behavior based on research showing that only 38% of Americans use third-party delivery companies like Grubhub at least some of the time. By striking this deal, Amazon said it intends to make it more convenient for its Prime members to order and receive what they want and where they want it.

Prime members can sign up for Grubhub+ by visiting amazon.com/grubhub.

Seattle-based Amazon is No. 2 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.