Amazon strikes deal with Grubhub parent company, offers free delivery to Prime members

29

Amazon strikes deal with Grubhub parent company, offers free delivery to Prime members: As part of the arrangement, Prime members will receive a year’s worth of free deliveries from Grubhub in any of the 4,000 cities in the United States that they choose to order over $12.

Grubhub now offers free delivery for Amazon Prime customers who place food orders through the platform.

After the promotional period for Grubhub+ has ended, Prime members will be charged the standard monthly fee of $9.99 for the service. The promotional period for Grubhub+ is valid for one year. In order to avoid the cost, the order total must be at least $12.

Following an agreement between Amazon and Just Eat Takeaway, Grubhub’s parent company, which granted the e-commerce giant the opportunity to buy a 2 percent share in Grubhub even as it continued to explore the possibility of selling the food delivery platform, this transaction was the next logical step.

In the United States, there are around 153 million people who are members of Amazon Prime.

The Chief Executive Officer of Grubhub, Adam DeWitt, made the following comment in a press release: “We’re sure that this service will expose many new diners to the value of Grubhub+ while driving additional business to our restaurant partners and drivers.”

The growth of meal delivery apps like Grubhub has slowed down after experiencing an initial epidemic spike. This is because consumers are returning to eating in-person and increasingly placing takeout orders. A survey that was conducted in May by Paytronix, a consulting organization that provides advice to restaurants, retail chains, and convenience stores, found that takeout orders now make up the majority of all digital orders.

According to Paytronix, “While delivery was king before and during the height of the pandemic, more recent data indicates that takeout orders now dominate digital orders, with numbers even higher than they were pre-pandemic,” and the company also noted that takeout orders “jumped from approximately 35 percent of orders in January 2020 to a majority in March of 2022, a trend that appears to be increasing.”