Amazon starts to offer meal delivery through Grubhub

Americans can now order meals through Amazon, which has expanded its partnership with Grubhub. It will also enter the capital of Just Eat Takeaway‘s ailing subsidiary.

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The two companies already work together, but have now entered a commercial agreement that is automatically renewed annually. Amazon will also be able to offer its Prime members a free subscription to Grubhub+, which allows them to get benefits such as free delivery and exclusive offers.

Amazon is also entering Grubhub’s capital, receiving 4 % share options in exchange for the deal. Additional stock options, up to 10 % of the share capital, can be granted based on certain performance conditions.

Strategic implications

Just Eat Takeaway has long been under pressure to sell Grubhub, which it bought during the pandemic for a whopping 7.3 billion dollars. Since then, however, orders have declined significantly and competition from companies such as Uber Eats and DoorDash has increased.

Analysts see the deal as a way to make Grubhub more attractive to potential buyers, though the partnership could also serve as a trial period for a possible acquisition by Amazon. Any follow-up will of course depend on the results of the collaboration.