Amazon Prime members to get free food deliveries through Grubhub deal

Amazon and Grubhub announced a deal Wednesday that will allow Amazon Prime subscribers in the United States to get free delivery from certain restaurants.

The e-commerce giant also has an option to purchase a 2 percent stake in Grubhub as part of the deal. Amazon can purchase a further 13 percent stake at a “formula-based price,” calculated primarily by the number of new customers added in the deal.

Amazon Prime subscribers will be able to sign up for a free one-year membership of Grubhub’s premium service starting Wednesday, according to a press release from Just Eat Takeaway.com, the Dutch company that owns Grubhub.

“I am incredibly excited to announce this collaboration with Amazon that will help Grubhub continue to deliver on our long-standing mission to connect more diners with local restaurants,” Grubhub CEO Adam DeWitt said in a statement. 

The deal comes as the food-delivery industry struggles after the surge in demand driven by the COVID-19 pandemic abates.

Just Eat has been considering a sale of Grubhub just over a year after purchasing the platform for $7.3 billion. Grubhub lost roughly $410 million in 2021.

News of the deal sent shares of Grubhub’s competitors down Wednesday, with Uber sliding more than 3 percent and DoorDash falling by 9 percent.

Amazon has previously added food delivery perks to Prime members in the United Kingdom and Ireland through a partnership with Deliveroo.