Amazon has announced that U.S. customers can now order from Grubhub directly through its shopping app and website, enhancing the existing partnership that provides Prime members with free access to Grubhub+ membership.

As part of this expanded agreement, Amazon Prime members will continue to enjoy the benefits of a complimentary Grubhub+ membership, valued at $120 annually, which includes free delivery on orders over $12. This integration aims to streamline the food ordering process for Amazon users, making it more convenient to access Grubhub’s services.

“This new deal bundles the Grubhub membership with Prime and integrates it on its app and website. It will remain available to the loyalty users every year thereafter as long as they remain with Prime,” Amazon stated.

The initial deal between Amazon and Grubhub’s parent company, Just Eat Takeaway.com, was established in 2022 and extended in 2023. This latest move represents a deeper integration of services, enhancing the value proposition for Amazon Prime members, who pay $139 annually for a host of benefits, including free delivery, gaming perks, savings on medical prescriptions, and access to Amazon Music, Prime Video, and Prime Reading.

In addition to enhancing the user experience, this deal has strategic implications for Grubhub. Sean Kealy, an analyst at Panmure Gordon, noted, “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.”

Amazon secured the right to purchase a 2% stake in Grubhub in July 2022. According to Just Eat Takeaway, Amazon has already received warrants representing 4% of Grubhub’s equity and may acquire up to an additional 10% based on certain performance conditions.

This expanded partnership is set to benefit a significant portion of Amazon’s U.S. customer base. About 167 million Amazon customers in the U.S. were subscribed to Prime in 2023, representing approximately 71% of all users in the country, according to data from Statista.

By offering an integrated Grubhub ordering experience, Amazon continues to enhance the value of its Prime membership, ensuring customers have access to a wide range of services and benefits under one umbrella. The convenience of ordering food directly through Amazon’s platforms is expected to attract more users and strengthen customer loyalty.

For more details, read the full article on Reuters.