Partnership with Amazon gives Prime members a free Grubhub subscription trial
Amazon is launching a partnership with Grubhub that will offer its Prime members a free one-year subscription to the online and mobile ready-meal ordering and delivery platform, the company announced on Wednesday. Photo by Ajay Suresh/Wikimedia
July 6 (UPI) — Amazon is launching a partnership with Grubhub that will offer its Prime members a free one-year subscription to the online and mobile ready-meal ordering and delivery platform, the company announced on Wednesday.
The deal gives Amazon the right to buy a 2% stake in Grubhub, with a chance to increase that stake to a total of 15% based on certain performance factors like the number of customers added.
Founded in Chicago in 2004, Grubhub is a subsidiary of Dutch multinational online food ordering and delivery company Just Eat Takeaway.com.
In April, news broke that the parent company was considering selling its Grubhub subsidiary just a year after buying it.
The company’s stock rose 15.46% on Wednesday’s news, closing the trading day at 15.86 euros.
The partnership between the two companies is automatically renewed each year unless one or the other decides to end it.
The free 1-year subscription to Grubhub is only available to Amazon Prime members in the United States.
“I’m incredibly excited to announce this collaboration with Amazon that will help Grubhub continue its long-standing mission of connecting more diners with local restaurants. Amazon has redefined convenience with Prime and we’re confident this offering will expose many new diners to the value of Grubhub+ while generating more business for our catering partners and drivers,” Grubhub CEO Adam DeWitt said in a statement.
Amazon hopes to attract new members to its online streaming platform with the free food delivery subscription. The news comes a week before the company’s Amazon Prime Day promotion, on July 12-13.
“Being able to offer Prime members a year of Grubhub+ and zero restaurant delivery fees is our way of saying ‘thank you,'” Amazon Vice President Jamil Ghani said in a statement.
“Prime already delivers great value to members. These new exclusive offers and experiences show how just one Prime membership unlocks a whole world of potential.”