February 26, 2024

Amazon Prime now comes with another perk: free food delivery for a year.

Prime members will get a free one-year subscription to Grubhub+, a food delivery app where consumers in over 4,000 cities can order from a large network of restaurants with no delivery fees.

“Prime truly delivers great value to members. These new exclusive offers and experiences show how a single Prime membership opens up a whole world of possibilities,” Jamil Ghani, Amazon Prime Vice President, said in a statement.

A Grubhub+ membership costs about $120 for one year, but it won’t cost existing Prime members a penny. Subscribers can activate the deal on amazon.com/grubhub.

The subscription waives delivery fees for food orders over $12 and unlocks other discounts as well.

Amazon’s partnership with Grubhub, which is owned by Amsterdam-based Just Eat Takeaway.com, is expected to expand Grubhub’s membership base and market share as it competes with competing food delivery services such as DoorDash and Uber Eats.

Adam DeWitt, CEO of Grubhub, said: statement Wednesday. “Amazon has redefined convenience with Prime and we are confident this offering will expose many new diners to the value of Grubhub+ while driving more business to our restaurant partners and drivers.”

Under the terms of the deal, Amazon will acquire a 2% stake in Grubhub. An additional 13% stake in the company is dependent on key performance objectives, including Grubhub’s acquisition of an undisclosed number of new customers through the agreement.

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