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As
part of the agreement, Amazon Prime members will continue to be
eligible to avail a free Grubhub+ membership worth $120 a year,
which includes free delivery on orders above $12.
Amazon already offers no-fee access to Grubhub, which is owned
by Just Eat Takeaway.com, to U.S. Prime members. The initial
deal was struck for a year in 2022 and then the companies
extended it for a year in 2023.
The new deal bundles the Grubhub membership with Prime and
integrates it on its app and the website. It will remain
available to the loyalty users "every year thereafter as long as
they remain with Prime," Amazon said.
Prime membership in the U.S. costs $139 a year and includes free
delivery, gaming benefits, savings and discounts on medical
prescriptions at nearly 60,000 pharmacies, access to Amazon
Music, Prime Video and Prime Reading.
Amazon had secured the right to buy a 2% stake in Grubhub in
July 2022.
In a separate statement, JustEat Takewaway said Amazon has
received warrants representing 4% of Grubhub's equity and may
also receive warrants up to a further 10% of Grubhub’s equity
based on certain performance conditions.
"The important impact of this deal is that it makes GrubHub more
attractive to a potential buyer, as Just Eat Takeaway has been
attempting to sell it for some time now – since shortly after it
made the initial acquisition," Sean Kealy, an analyst at Panmure
Gordon, said.
About 167 million Amazon customers in the U.S. subscribed to
Prime in 2023, representing approximately 71% of all users in
the country, according to data platform Statista.
(Reporting by Utkarsh Shetti, Shubham Kalia in Bengaluru and
Piotr Lipinski; Editing by Nivedita Bhattacharjee)
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