Amazon has announced a handful of new perks for Prime members ahead of Prime Day this month, including free deliveries from nearby restaurants. All Prime members in the US will now get access to a one-year Grubhub+ membership, which typically costs $10 a month, for free. Amazon used to have a restaurant delivery service of its own in an attempt to create a homegrown UberEats rival, but the company ultimately shut it down in the UK and the US. This time, it's teaming up with an established delivery service.
Grubhub+ members enjoy $0 food delivery fees, so long as their orders go over $12. They also get rewards that include free food and discounts on their orders. Prime subscribers can redeem their free Grubhub+ membership by going to the official perk page on Amazon, activating the offer and then sharing their Prime status with the delivery service. Even existing Grubhub+ users can claim the freebie, with their free year kicking in after their current billing cycle ends. People who cancel their Prime membership will also lose access to their free year of Grubhub+, while those who stick around will be charged $10 a month for the delivery service after 12 months.
This partnership is part of the commercial agreement Amazon has entered with Just Eat Takeaway.com, the Dutch parent company of Grubhub. Under the agreement, Amazon will receive stock warrants worth 2 percent of Grubhub’s fully-diluted common equity. It follows a similar deal where Amazon invested in UK food delivery service Deliveroo and also offered UK Prime subscribers a full year of deliveries.
Grubhub says it "continues to actively explore the partial or full sale" of the company, but whether Amazon will swoop in with an offer remains to be seen.
Adam DeWitt, CEO of Grubhub, said in a statement:
"I am incredibly excited to announce this collaboration with Amazon that will help Grubhub continue to deliver on our long-standing mission to connect more diners with local restaurants. Amazon has redefined convenience with Prime and we’re confident this offering will expose many new diners to the value of Grubhub+ while driving more business to our restaurant partners and drivers."