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(Reuters) – Amazon.com Inc said on Thursday its U.S. customers can now order directly from Grubhub on its shopping app and website, expanding an existing deal to give Prime members free Grubhub+ membership.
As part of the deal, Amazon Prime members will continue to receive a free annual Grubhub+ membership valued at $120, which includes free delivery on orders over $12.
Amazon already offers free access to Grubhub, which is owned by Just Eat Takeaway.com, to its Prime members in the U.S. The deal was originally signed for one year in 2022, and then the two companies extended it for another year in 2023.
Under the new deal, Grubhub membership will be bundled with Prime membership and integrated into its app and website, and Amazon said members will get the service every year for as long as they remain Prime members.
Prime membership in the United States costs $139 per year and includes free shipping, gaming perks, savings and discounts on medical prescriptions at approximately 60,000 pharmacies, access to Amazon Music, Prime Video, and Prime Reading, among other benefits.
Amazon had secured the right to buy a 2% stake in Grubhub in July 2022.
Just Eat Takeaway said in a separate statement that Amazon had received warrants equivalent to 4% of Grubhub shares and could receive an additional warrant equivalent to up to 10% of Grubhub shares, subject to certain performance conditions.
“A key impact of this transaction is that it will make Grubhub more attractive to potential buyers, as Just Eat Takeaway has been trying to sell Grubhub for some time since its initial acquisition,” said Sean Kiely, analyst at Panmure Gordon.
According to data platform Statista, around 167 million Amazon customers in the U.S. will subscribe to Prime in 2023, roughly 71% of all users in the country.
(Reporting by Utkarsh Shetty, Shubham Kalia and Piotr Lipinski in Bengaluru; Editing by Nivedita Bhattacharjee)
