Amazon now owns a stake in Just Eat’s US meal delivery company, Grubhub, which is officially entering the food delivery space – again.
This isn’t the company’s first foray into meal delivery. Amazon has tried to get into the space before but shut down Amazon Restaurants, its internal delivery service, in 2019.
Now, the tech giant will acquire a 2% stake in Grubhub, with the option to increase the holding to 15%, Bloomberg reports. Grubhub is owned by Just Eat Takeaway, known as Europe’s largest meal delivery company, which has taken a big hit this year — its stock is down 67 percent, according to the news outlet. The deal is a welcome relief to the company, as shareholders have reportedly demanded that Grubhub be found a partner or that the company be sold out entirely.
The membership agreement will be renewed each year unless Amazon or Grubhub decides to terminate it, Just Eat told Bloomberg.
US Prime users will be offered Grubhub membership + free for 1 year (usually $9.99/month) starting today. That means no delivery fees for orders over $12 from “hundreds of thousands of restaurants,” according to the company. Launched in 2020, Grubhub+ is the platform’s premium subscription service where members receive free delivery of orders and other potential benefits such as discounts.
Notably, Grubhub has recently come under fire, even legal action, over hidden fees, with the District of Columbia alleging multiple violations of the DC’s Consumer Protection Act in March.
District of Columbia sues Grubhub for hidden fees, misleading ads, and more
Grubhub CEO Adam DeWitt said in a statement that the partnership “will help Grubhub continue to carry out our long-term mission of connecting more diners with local restaurants.”
About a year ago, Amazon offered Grubhub+ subscriptions to Amazon Prime Student members for free. This partnership is a significant expansion of such initial offerings.