The deal affords Prime members one yr of Grubhub+, after which members will mechanically be charged the service’s present $9.99 month-to-month fee. Orders have to be no less than $12 to keep away from the supply charge.
The partnership offers Amazon the choice to buy over a two % stake in Grubhub at an “undisclosed however negligible value,” in keeping with a assertion from Simply Eat Takeaway.com, the Dutch firm that owns Grubhub. The corporate may purchase a further 13 % stake in Grubhub at an unspecified “formula-based value” that is determined by Grubhub’s efficiency.
The deal follows a notable monetary downturn for Grubhub: As pandemic restrictions raise, the demand for meals supply providers has diminished as individuals return to eating in at eating places. What’s extra, Grubhub lingers far behind different supply providers within the US, controlling about 13 % of the meals supply market versus DoorDash’s 60 % and Uber Eats’ 24 % (per Bloomberg).
Simply Eat is the biggest meals supply platform in Europe, however the firm mentioned it will proceed to discover a partial or full sale of Grubhub as enterprise continues to worsen. At any fee, Grubhub isn’t Amazon’s first foray into the meal supply business. The e-commerce mammoth additionally owns a stake in Deliveroo, a British service whose shares are down about 50 % this yr.