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Amazon is offering US Prime members a year-long Grubhub membership after taking a 2% stake in its parent company

A GrubHub delivery worker in Times Square on December 29, 2021.

Tayfun Coskun/Anadolu Agency via Getty Images

  • US Amazon Prime members will get a year’s free Grubhub membership after it took a 2% stake in its parent company.
  • Parent Just Eat said in a statement it expects the deal to expand the membership base of Grubhub+.
  • Just Eat has plans to expand into US suburban markets as it struggles to keep pace with rivals.

Amazon Prime members in the US are from Wednesday eligible for a free, year-long membership to Grubhub, after the e-commerce giant took a 2% stake in Grubhub’s parent Just Eat Takeaway. 

Just Eat announced the deal in a press statement published Wednesday, which it said it expects to have a “neutral impact” on the delivery app’s 2022 earnings. 

The commercial stake will renew indefinitely every year, unless one party decides to terminate. Amazon’s stake may rise to as high as 13%, depending on whether Grubhub meets certain performance targets, the release said.

The membership deal will offer Prime members free delivery on hundreds of thousands of eligible restaurants through the app and members-only rewards. 

Grubhub has faltered amid a crowded food delivery market including competitors Uber Eats and DoorDash. The parent company’s stock price has plummeted by more than 70% since the start of 2022.

The relationship between Just Eat and Grubhub has hit roadblocks over the past year. The company said in the release that it was continuing to “actively explore” a full sale of Grubhub, its US arm, which it acquired less than one year ago in a $7.3 billion deal. The Dutch food delivery company has reportedly offered up Grubhub to bidders for a hugely discounted price compared to what it spent to acquire the platform. 

Matt Maloney, a Grubhub founder, recently teamed up with a private investor in a failed attempt to take back full control of the platform, according to a Sunday Times report.

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