First books, then groceries, now food delivery service.
Amazon and Grubhub are bringing restaurant meals to customers in a joint venture the companies announced on Thursday. Amazon users will be able to order the meals using the online app or Amazon website. The services are available in all states across the US.
Prime members can take advantage of a free ongoing Grubhub+ membership, which the companies say is worth $120 a year. The membership is $10 a month. Comparatively, Amazon Prime is $139 a year.
The service includes no delivery fees on orders over $12, lower service fees, 5 per cent credit back on pick-up orders and other offers.
Only Prime members can benefit from the additional perks and can also save $5 on an order from now through 2 June. Previously, Prime members had access to a one-year trial of Grubhub+. With the companies’ announcement, that service is now permanent.
Amazon acquired a 2 per cent stake in JustEat Takeaway, Grubhub’s parent company, in 2022. According to Consumer Intelligence Research Partners, the retail giant had $180million Prime users in March, up 8 per cent from the previous year. Grubhub has 33m users, the company’s website states.
“We’re thrilled to build on our successful collaboration with Amazon and bring more convenience to Amazon customers by offering Grubhub’s network of hundreds of thousands of restaurants directly on Amazon.com and in the Amazon shopping app,” said Howard Migdal, chief executive officer of Grubhub.
“More consumers can now experience the exceptional value and service offered by Grubhub+ with Prime members enjoying $0 delivery fees on an ongoing basis.”
Amazon started in 1994 as an online bookseller. Throughout the decades, the company has expanded to sell other items and began its Amazon Fresh grocery delivery service in 2007. The first physical store opened in 2020.
