Amazon Prime members in the US are eligible starting Wednesday for a free one-year membership of Grubhub, after the e-commerce giant acquired a 2% stake in Grubhub’s parent company Just Eat Takeaway.
Just eat, announce the deal In a press release published on Wednesday,which said it expects to have a “neutral effect” on delivery app earnings for 2022.
The business stake will be renewed indefinitely each year, unless one of the parties decides to terminate. Amazon’s share could rise to 13%, the statement said, depending on whether Grubhub meets certain performance targets.
The membership deal will provide Prime members with free delivery to hundreds of thousands of eligible restaurants through the app and members-only rewards.
Grubhub stumbled amidst a crowded food delivery market including competitors
and DoorDash. The parent company’s stock price is down more than 70% since the start of 2022.
The relationship between Just Eat and Grubhub has run into roadblocks over the past year. The company said in the statement that it continues to “actively explore” a whole sale to Grubhub, its US arm, which Acquired less than a year ago in a $7.3 billion deal. Dutch food delivery company It is said offered Grubhub is offered to bidders at a very discounted price compared to what they spent to get the platform.
Matt Maloney, founder of Grubhub, recently teamed up with a private investor in a failed attempt to regain full control of the platform, According to the Sunday Times report.