Grubhub recruits customers through Amazon

Amazon Prime members can order from Grubhub, the US subsidiary of Just Eat Takeaway, for a year without delivery charges. In return, Amazon is stepping into the meal delivery company’s capital.

Return from 2023 onwards

Just Eat Takeaway has struck a commercial deal with Amazon: Amazon Prime members in the United States can now sign up for a free membership to Grubhub+. With this service, Prime members can order from restaurants connected to the meal platform Grubhub without paying a delivery charge. The membership also gives customers access to special benefits and rewards.

The subscription will be valid for one year, after which Grubhub naturally hopes people will switch to a paying membership. “The agreement is expected to expand membership to Grubhub+, while having a neutral impact on Grubhub’s 2022 earnings and cash flow, and be earnings and cash flow accretive for Grubhub from 2023 onward,” Just Eat Takeaway argues.

Up to 15% of shares

Thanks to the deal, Just Eat Takeaway hopes to boost sales as it is struggling in the US. The Dutch group took over Grubhub only a year ago, but was immediately criticised by shareholders. CEO Jitse Groen had to promise in April that it would look for a solution (read: buyer) for its American branch.

Amazon might just become that buyer, as the e-commerce giant already receives shares in exchange for the collaboration. Amazon will in any case receive a 2% participation in Grubhub, but up to a further 13% may be added if enough new customers subscribe. Nonetheless, Just Eat Takeaway promises to continue actively exploring the partial or full sale of Grubhub.