Amazon has established a commercial alliance in the United States with Just Eat Takeaway.com by which subscribing members of the Amazon Prime country will be able to access Grubhub+ services for free for one year and which also contemplates that an Amazon subsidiary receive guarantees on 2% of Grubhub’s capital and options on up to 13% added.
The deal comes after Just Eat Takeaway.com explored a possible sale of Grubhub, its main US business, for which it paid $7.3 billion last year. Grubhub soared after the outbreak of the Covid-19 pandemic, but it is currently going through difficult times and shares of Just Eat have lost more than 60% so far in 2022.
Under the terms of the agreement, this free Grubhub+ membership automatically renews each year unless canceled by Amazon or Grubhub. Amazon also has the option to buy up to a total 15% stake in Grubhub, which partners with more than 320,000 restaurants in more than 4,000 US cities.
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This deal, which gives Grubhub a competitive advantage over DoorDash and Uber Eats, once again inserts Amazon into the highly competitive online food delivery market, who launched a restaurant delivery service for Prime members in 2015, but closed it in 2019.
Amazon will also receive guarantees on up to an additional 13% of Grubhub’s capital; whose granting is subject to the fulfillment of certain performance conditions, specifically the number of new clients obtained thanks to the commercial agreement.
“We are confident that this offer will expose many new diners to the value of Grubhub+ while generating more business for our restaurant partners and drivers“, said Adam DeWitt, CEO of Grubhub.