Amazon has agreed to add Grubhub to its selection of Prime services in the U.S. In the deal, Amazon is also granted the option to acquire a small stake in the food-ordering company.
Grubhub’s parent company Just Eat Takeaway, said Amazon has an initial option for a 2% stake in the company, and Prime members can have their delivery fees waved from selected restaurants. Amazon’s stake in Grubhub could rise to 15% but is based on performance terms and how many new customers will be added.
Just Eat will still own Grubhub and the deal will renew annually unless either Amazon or Just Eat terminates it and it is expected to materially add to Grubhub’s business in the coming year, Just Eat said announcing the agreement.
This deal brings Amazon deeper into food-related services through its Prime membership program. Grocery benefits are already afforded to its Prime members under its Whole Foods Market division as an added benefit to its subscription service.
“The value of a Prime membership continues to grow with this offer,” said Jamil Ghani, VP of Amazon Prime.