Amazon Announces Grubhub+ as Ongoing Prime Member Offer; Customers Can Now Order Grubhub Directly from Amazon.com and the Amazon Shopping App

Rhea-AI Summary

Amazon (NASDAQ: AMZN) and Grubhub announced a partnership, allowing Prime members to order from Grubhub directly via Amazon.com and the Amazon Shopping app.

Prime members benefit from $0 delivery fees on eligible orders, reduced service fees, 5% credit back on pick-up orders, and exclusive Grubhub offers, valued at $120 annually.

For a time, Prime members save $5 on Grubhub orders over $25 until June 2. This integration aims to enhance convenience and savings.

Since the Grubhub+ offer started, Prime members have saved hundreds of millions in delivery fees and promotions.

Positive

• Amazon integrates Grubhub orders into its platform, enhancing convenience.
• Prime members receive $0 delivery fees on eligible orders.
• Reduced service fees for Prime members.
• 5% credit back on pick-up orders for Prime members.
• Exclusive Grubhub offers valued at $120 annually for Prime members.
• For a time, Prime members save $5 on orders over $25 until June 2.
• Prime members have saved hundreds of millions since the Grubhub+ offer started.

Negative

• Potential increase in competition for Grubhub with other food delivery services integrated on Amazon's platform.
• Risk of over-reliance on Amazon for Grubhub's customer base.

Insights

Market Research Analyst

Amazon's partnership with Grubhub marks a strategic move to enhance the value of Prime membership by integrating a popular food delivery service directly into Amazon's ecosystem. This collaboration is a significant value addition for Prime members, offering various benefits such as $0 delivery fees and lower service fees, which could lead to increased customer satisfaction and retention. By embedding Grubhub services into the Amazon Shopping app and website, Amazon improves customer convenience and ensures a seamless user experience, potentially increasing customer engagement and the use of Prime benefits.

From a market research perspective, this partnership makes Amazon's Prime membership even more attractive, likely extending its appeal to a broader audience who frequently use food delivery services. The combined benefits of free delivery and exclusive deals may lead to higher customer acquisition and retention rates for Amazon Prime. Additionally, the promotional strategies and bundled offers, like the $5 discount on orders over $25, enhance the appeal of the service and drive more frequent usage among customers.

Analyzing the market landscape, this move can be seen as a step to compete with other e-commerce and delivery services that offer similar benefits. Amazon is strategically placing itself to capture a larger market share by leveraging its vast customer base and extensive logistics network to integrate additional services like food delivery.

Financial Analyst

From a financial perspective, this partnership could be beneficial for both Amazon and Grubhub. For Amazon, integrating Grubhub adds another layer of value to its Prime membership, which is important for retaining and expanding its subscriber base. Increased Prime memberships can lead to higher recurring revenue, offsetting the costs of offering free Grubhub+ memberships.

For Grubhub, gaining access to Amazon's vast customer base across the U.S. is a significant advantage. The exposure to millions of Prime members can drive more orders and higher revenue, enhancing Grubhub's market position. Furthermore, the seamless integration with Amazon's platform can boost Grubhub's user engagement and potentially increase its market share in the food delivery sector.

However, it is essential to consider the costs associated with this partnership, such as the loss of subscription fees from existing Grubhub+ members who are also Prime members. Over the long term, the partnership's success will depend on whether the increase in order volume and customer acquisition outweighs these costs.

Investors should monitor key metrics such as Prime membership growth, order volume through the integrated platform and any changes in Grubhub's financial performance to assess the partnership's true impact.

Prime members enjoy $0 delivery fees on eligible orders, lower service fees, 5% credit back on pick-up orders, and exclusive Grubhub offers with Grubhub+—a $120 annual value

For a limited time, Prime members can also save $5 on a Grubhub order over $25 from now through June 2

SEATTLE & CHICAGO--(BUSINESS WIRE)-- Amazon (NASDAQ: AMZN) and Grubhub (LSE: JET, AMS: TKWY) today announced they are partnering to make restaurant delivery to customers’ doors more convenient and affordable. Starting today, Amazon customers in the U.S. can order from hundreds of thousands of restaurants in all 50 states with Grubhub directly on Amazon.com and in the Amazon Shopping app. Additionally, as long as a customer remains a Prime member, they can enjoy a free ongoing Grubhub+ membership worth $120 a year, without automatically renewing into a paid Grubhub+ membership. Grubhub+ includes $0 delivery fees on eligible orders over $12, lower service fees, 5% credit back on pick-up orders, and exclusive offers.

Prime members get free Grubhub+, and Amazon customers can order Grubhub on Amazon.com and in the Amazon Shopping app. (Photo: Business Wire)

“Whether it's saving money on your favorite takeout with Grubhub+, exclusive deals on Prime Day, prescription savings with RxPass, entertainment with Prime Video, or free shipping on more than 300 million items including tens of millions of products available with Same-Day or One-Day Delivery, Prime keeps getting better for members,” said Jamil Ghani, vice president of Amazon Prime. “We know Prime members value savings on food delivery, so we are extending the $0 delivery fees and exclusive savings with Grubhub+ for Prime members, and now customers can enjoy easy access to Grubhub from the Amazon store and app.”

“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.”

Get Your Grub (and Convenience) On

Amazon customers can now access Grubhub conveniently on Amazon.com and in the Amazon Shopping app, enabling Grubhub orders without having to download or switch to the Grubhub app. Visit amazon.com/grubhub to complete a food delivery order with Grubhub. The ordering experience is identical to the experience on Grubhub.com or Grubhub’s app. Customers will see the same restaurant prices that they do on Grubhub, and delivery partners will be paid the same way they would be for orders directly from Grubhub.

Get Your Grub (and Savings) On

Prime members can now enjoy all the savings perks of Grubhub+ on an ongoing basis without automatically renewing into a paid Grubhub+ membership—$0 delivery fees on eligible orders, lower service fees, 5% credit back on pick-up orders, and exclusive offers. To view details and activate the Grubhub+ ongoing offer, Prime members can visit amazon.com/grubhub. Previously offered as a one-year trial that converted to a paid Grubhub+ membership, Prime members only need to activate the ongoing Grubhub+ offer once—all one needs to enjoy Grubhub+ is a Prime membership.

Since the start of the Grubhub+ offer in 2022, Prime members have saved hundreds of millions of dollars from waived subscription fees and discounts. Those who place at least one order a month save an average of $300 per year in delivery fees and promotions with Grubhub+. Beyond the $0 delivery fees on eligible orders, lower service fees, 5% credit back on pick-up orders, and exclusive offers that come with Grubhub+, Prime members automatically save $120 per year on a Grubhub+ membership—and every year thereafter as long as they remain with Prime.

Additionally, Prime members can whet their appetites with an exclusive promotional offer, saving Prime members $5 on a Grubhub delivery order over $25 from now through June 2 with the code “PRIME5”. The code can be entered by Prime members during checkout when shopping Grubhub on Amazon.com or in the Amazon Shopping app, or the code can be automatically applied by clicking on a banner at checkout. Those Prime members who choose to use the Grubhub app can input the code manually. Terms and conditions apply.

Additional Amazon & Grubhub Experiences and Offers

Grubhub and Amazon aren’t only rewarding Prime members through cost savings and convenience, but also through exclusive experiences. With Prime Video and Grubhub's ongoing "Tune In & Takeout" series, the age-old dilemma of “what to watch and what to eat” is solved with unique food pairings and offers that connect to members’ favorite shows and movies on Prime Video, like Mr. & Mrs. Smith, Road House, and Ricky Stanicky. Grubhub recently delivered a limited edition Nuka-Blast Burger meal for fans to celebrate the premiere of Fallout on Prime Video. The kit came with the infamously spicy Nuka-Blast Burger, along with other iconic staples from the show’s post-apocalyptic universe, delivered in a one-of-a-kind collector’s box.

Explore the Benefits of Prime

Prime is savings, convenience, and entertainment all in a single membership. In the U.S., Prime members enjoy a wide range of shopping, savings, and entertainment benefits, including:

• More than 300 million items available with free Prime shipping and tens of millions of the most popular items available with free Same-Day or One-Day Delivery.
• Exclusive deals and shopping events like Prime Day and Prime Big Deal Days.
• Access to a vast collection of premium programming on Prime Video in a one-stop entertainment destination in one application available across thousands of devices, including Amazon MGM Studios-produced series and movies Saltburn, The Lord of the Rings: The Rings of Power, Reacher, The Boys, Fallout, and Road House; licensed fan favorites Dawson’s Creek and M3GAN; and Prime member exclusive live sports including Thursday Night Football.
• The ability to use Prime shopping benefits—like fast, free delivery, a trusted checkout experience, 24/7 live chat support, and hassle-free returns—directly on brands’ online stores with the convenient and trusted experience they expect from Amazon with Buy with Prime.
• Ad-free listening of 100 million songs and millions of podcast episodes with Amazon Music.
• Prescription medications as low as $1 per month and fast, free shipping from Amazon Pharmacy.
• Access to unlimited eligible generic prescription medications for only $5 per month (including free shipping) with RxPass from Amazon Pharmacy.
• High-quality health care from One Medical for only $9 per month (or $99 annually), with the option to add up to five additional memberships for the family for only $6 per month (or $66 annually) each.
• Free two-hour Amazon Fresh grocery delivery windows on orders over $100 (and delivery charges between $6.95 to $9.95 for orders less than $100), and in-store and online savings on select groceries at Amazon Fresh and Whole Foods Market stores across the U.S.
• Access to unlimited grocery delivery on orders over $35 from Whole Foods Market, Amazon Fresh, and other local grocery and specialty retailers with a grocery delivery subscription for $9.99 per month.
• Unlimited photo storage with Amazon Photos.
• Instant access to free games, a free Twitch channel subscription, and more gaming benefits with Prime Gaming.
• More than 3,000 books and magazines with Prime Reading.
• A free Grubhub+ membership valued at $120 per year, offering unlimited $0 delivery fees on eligible orders over $12.

Anyone can join Prime for $14.99 per month or $139 per year or start a free 30-day trial if eligible at amazon.com/prime. Young adults ages 18-24 and college students can try Prime Student with a six-month trial at amazon.com/joinstudent, then pay $7.49 per month, or $69 per year. Qualifying government assistance recipients can try Prime Access for 30-days and then pay $6.99 per month at amazon.com/getprimeaccess.

About Amazon

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.

About Grubhub

Grubhub is part of Just Eat Takeaway.com (LSE: JET, AMS: TKWY), and is a leading U.S. food ordering and delivery marketplace. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub elevates food ordering through innovative restaurant technology, easy-to-use platforms, and an improved delivery experience. Grubhub features 375,000 merchants in over 4,000 U.S. cities.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240529097204/en/

Amazon.com, Inc.

Media Hotline

Amazon-pr@amazon.com

www.amazon.com/pr

Grubhub

Media Hotline

press@grubhub.com

about.grubhub.com/media

Source: Amazon.com, Inc.

FAQ

What benefits do Prime members get with Grubhub+?

Prime members get $0 delivery fees on eligible orders, lower service fees, 5% credit back on pick-up orders, and exclusive Grubhub offers valued at $120 annually.

Can Prime members save on Grubhub orders?

Yes, Prime members can save $5 on Grubhub orders over $25 until June 2 by using the code 'PRIME5'.

How can Prime members access Grubhub through Amazon?

Prime members can order from Grubhub directly on Amazon.com and the Amazon Shopping app.

What is the annual value of the Grubhub+ membership for Prime members?

The Grubhub+ membership is valued at $120 annually for Prime members.

How much have Prime members saved since the Grubhub+ offer started?

Prime members have saved hundreds of millions of dollars in delivery fees and promotions since the start of the Grubhub+ offer.