Amazon has announced a handful of new perks for Prime members ahead of Prime Day this month, including free delivery from nearby restaurants. All Prime members in the US now get access to a one-year Grubhub+ membership, which typically costs $10 per month, is free. Amazon used to have its own restaurant delivery service to create a domestic UberEats rival, but the company eventually shut it down in the UK and US. This time it works with an established delivery service.
Grubhub+ members receive $0 grocery delivery fee as long as their orders exceed $12. They also get rewards that include free food and discounts on their orders. Prime subscribers can redeem their free Grubhub+ membership by going to Official Perks Page on Amazon, activate the offer and then share their Prime status with the delivery service. Even existing Grubhub+ users can claim the freebie, with their free year starting after the end of their current billing cycle. People who cancel their Prime membership also lose access to their free year of Grubhub+, while those who stay with it will have to pay $10 a month for the delivery service after 12 months.
This partnership is part of the commercial agreement that Amazon has entered with Just Eat Takeaway.com, Grubhub’s Dutch parent company. Under the terms of the agreement, Amazon will receive stock warrants representing 2 percent of Grubhub’s fully diluted common stock. Grubhub says it “remains actively evaluating the sale of all or part of the company,” but whether Amazon will step in with an offer remains to be seen. For now, Grubhub expects this partnership to add more members to its subscription service.
Grubhub CEO Adam DeWitt said in a statement:
“I’m incredibly excited to announce this collaboration with Amazon, which will help Grubhub continue to fulfill our long-standing mission of connecting more diners with local restaurants. Amazon has redefined convenience with Prime, and we’re confident this offering will introduce many new guests to the value of Grubhub+ while driving more business to our restaurant partners and drivers.”
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