Amazon Extends Free Grubhub+ Membership for Prime Members Indefinitely
Amazon and Grubhub have extended their partnership, offering U.S. Prime members an ongoing free Grubhub+ membership, providing perks valued at $120 annually. This arrangement eliminates delivery fees for orders over $12 and offers a 5% credit back on pick-up orders. Prime members can now conveniently place orders directly through Amazon's website and app, mirroring the seamless experience on Grubhub's platforms. Initially launched as a one-year trial in July 2022, the extended collaboration ensures that Prime subscribers, who pay $139 yearly, can maintain their free Grubhub+ access as long as they remain Prime members, equipping Grubhub to better compete with rivals like DoorDash and Uber Eats in the fiercely competitive food delivery market.
Key Takeaways
- Amazon's partnership extension offers Prime members ongoing free Grubhub+ benefits.
- Grubhub+ provides no delivery fees on orders over $12 and a 5% credit back on pick-up orders.
- Prime members have direct ordering access to Grubhub through Amazon's platforms.
- The collaboration, initially a one-year trial, now supplies free Grubhub+ for the duration of Prime membership.
- Grubhub, acquired by Just Eat Takeaway, solidifies its position among food delivery market competitors.
Analysis
Amazon's indefinite extension of free Grubhub+ for Prime members enhances customer loyalty and strengthens Grubhub's market competitiveness against rivals such as DoorDash and Uber Eats. This strategic alliance harnesses Amazon's expansive user base to potentially elevate Grubhub's order volumes, consequently impacting its financial performance positively. For Amazon, this adds value to the Prime subscription, fostering retention and attracting new sign-ups. Over time, this could lead to deeper service integration, further blurring the lines between e-commerce and food delivery sectors. However, this move may intensify competition, compelling other delivery services to seek similar alliances or innovate to retain market share.
Did You Know?
- Just Eat Takeaway: A prominent global online food delivery marketplace headquartered in Amsterdam, Netherlands. Established in 2020 through the merger of Just Eat and Takeaway.com, the company operates across various countries and acquired Grubhub in 2020 to expand its presence in the U.S. market.
- Grubhub+: A subscription service by Grubhub offering benefits like waived delivery fees on orders over $12 and a 5% credit back on pick-up orders. Traditionally priced at $120 annually, it is now provided for free to Amazon Prime members as part of the extended partnership between Amazon and Grubhub.
- Amazon Prime: A subscription service by Amazon offering members various benefits such as expedited shipping, streaming of movies and TV shows, and additional perks. With an annual cost of $139, it includes complimentary Grubhub+ membership as part of its extended partnership with Grubhub.