Amazon customers in the U.S. can now order food from nearby restaurants through Grubhub—directly on the e-commerce giant’s website and app.
The deal gets tastier if you’re an Amazon Prime member. Members will receive a free Grubhub Plus membership, normally worth $120 a year. The program offers free meal delivery on orders more than $12, lower service fees, 5 percent credit back on pick-up orders, and more.
The companies say the ordering experience is “identical” to a regular order on Grubhub’s app, with couriers completing the service like any other delivery. The service is accessible to all Amazon customers, even those without Prime.
Additionally, Amazon customers can opt-in to link their Grubhub account with their Amazon account.
Amazon customers in the U.S. can now order food from nearby restaurants through Grubhub directly on the e-commerce giant’s app.
Partnership aims to drive scale
This marks a big win in reaching new customers for Grubhub, which currently ranks third in U.S. market share, coming in at 8 percent—falling behind competitors Uber Eats at 23 percent and DoorDash at 67 percent, according to Bloomberg Second Measure.
“Restaurant owners will now have access to millions more consumers through Amazon,” said Grubhub CEO Howard Midgal in a statement.
Midgal adds that the deal will also drive more sales and generate more earnings opportunities for Grubhub delivery partners.
Grubhub gains investor
The embedding of Grubhub is also the first time Amazon has integrated third-party restaurant ordering within its app, which poses the question, why was Grubhub selected amidst its competitors?
Well, the move builds upon an ongoing partnership that kicked off in July 2022, when Amazon Prime members gained one year of free access to Grubhub Plus. That deal also brought perks to Amazon, including a 4 percent ownership stake in the food delivery company.
With this new partnership expansion, Amazon now has a 7 percent stake in Grubhub, with the possibility to increase that to 18 percent over the next five years.
