Food delivery staff on bicycles travel along a street in Latest York, U.S., on Tuesday, March 17, 2020.
Debetrius Freeman | Bloomberg | Getty Images
Amazon on Wednesday agreed to take a stake in Grubhub as a part of a deal that can even give members of its Prime subscription program a one-year membership to the food delivery service.
The partnership gives Amazon the choice to take a 2% stake in Grubhub, the U.S. subsidiary of Just Eat Takeaway.com, the European food giant said. Amazon will give you the option to extend its total stake to fifteen% of Grubhub depending on certain performance aspects, akin to the number of latest customers added.
News of the deal sent shares of delivery platforms lower. Uber’s stock fell greater than 3%, and shares of DoorDash plunged as much as 9%.
Amazon is sweetening the perks of its Prime program, which counts 200 million-plus members and already includes some food-related advantages akin to grocery discounts at Whole Foods. Prime members will now give you the option to forgo delivery fees on some Grubhub orders and access other advantages of Grubhub’s loyalty program at no extra cost.
“The worth of a Prime membership continues to grow with this offer,” said Jamil Ghani, vice chairman of Amazon Prime, in a press release.
The agreement comes as Netherlands-based Just Eat is exploring a sale of Grubhub amid pressure from investors to enhance its business. Just Eat’s stock is down greater than 60% this yr.
Amazon had previously experimented with adding food delivery perks to Prime. In September, it announced a tie-up with European delivery company Deliveroo that gave Prime members within the U.K. and Ireland access to Deliveroo Plus for one yr. Amazon took a stake in Deliveroo in 2019.
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