Amazon customers in the U.S. can now order food from nearby restaurants through Grubhub directly on Amazon’s app and website. This service is available to all Amazon users, but Prime members get extra perks. Prime members will receive a free Grubhub Plus membership, normally worth $120 a year. This membership offers benefits such as free meal delivery on orders over $12, lower service fees, 5 percent credit back on pick-up orders, and more. According to the companies, the ordering experience is “identical” to a regular order on Grubhub’s app, with couriers completing the service as usual.
This partnership marks a significant win for Grubhub, which currently ranks third in U.S. market share at 8 percent, behind Uber Eats at 23 percent and DoorDash at 67 percent. “Restaurant owners will now have access to millions more consumers through Amazon,” said Grubhub CEO Howard Midgal. This deal is expected to drive more sales and generate more earnings opportunities for Grubhub delivery partners.
The integration of Grubhub into Amazon’s app builds on an existing partnership that started in July 2022, when Amazon Prime members gained one year of free access to Grubhub Plus. This initial deal also provided Amazon with a 4 percent ownership stake in Grubhub. With the new partnership, Amazon now has a 7 percent stake in Grubhub, with the potential to increase it to 18 percent over the next five years.
This move is the first time Amazon has integrated third-party restaurant ordering within its app, highlighting the importance of the ongoing partnership with Grubhub. The collaboration is expected to expand Grubhub’s market reach and enhance the value proposition for Amazon Prime members. With the possibility of increasing its stake in Grubhub, Amazon is strategically positioning itself to benefit from the growing food delivery market.
Will Amazon's integration of Grubhub change your food ordering habits?
