Amazon takes stake in Grubhub, offers food delivery to Prime customers

2



Amazon agreed Wednesday to take a 2% stake in Grubhub, in a deal that would see the expansion of food delivery benefits to their customers.

The deal, confirmed by the European owners of Grubhub, Just Eat Takeaway, includes an option for Amazon to increase its stake to up to 15% if profits increase and more customers are brought in.

“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. Amazon has redefined convenience with Prime and we’re confident this offering will expose many new diners to the value of Grubhub+ while driving more business to our restaurant partners and drivers,” CEO of Grubhub Adam DeWitt said.

The deal will allow Amazon Prime members to take advantage of a Grubhub+ membership. This includes unlimited no-fee deliveries and increased access to rewards through the Grubhub app.

“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 Prime executive Jamil Ghani said

This is not the first time Amazon has stuck its toe in the food delivery market.


SEE ALSO: Sens. Warner, Rubio urge FTC investigation of TikTok over ‘repeated misrepresentations’


In 2019, Amazon acquired a stake in the UK food delivery company Deliveroo, allowing them to provide food delivery to Prime customers in the United Kingdom with no extra fees.

News of the deal sent stock prices for Grubhub competitors tumbling, but the partnership with Amazone comes after a punishing year for Just Eat Takeaway, which has seen its own value sink some 60% in a post-pandemic slowdown.





View original
Post

LEAVE A REPLY

Please enter your comment!
Please enter your name here