Amazon And Grubhub Have Teamed Up To Bring Prime Members Access To Meal Delivery Services

Free one-year Grubhub+ memberships (usually $9.99 a month) are available to Amazon (AMZN) customers who pay for the service, which will allow them to order from participating restaurants and get unlimited free deliveries.

A share in Grubhub’s company might be acquired by Amazon at the same time. To be clear, Amazon has the option to purchase up to 15% of Grubhub (GRUB) if certain business performance criteria are reached, which was announced by Grubhub’s parent company, Just Eat, which is situated in the Netherlands.

Amazon’s Prime membership, which now costs $139 a year, might see a bump in popularity as a result of the partnership. In addition, it aids in the company’s attempts to provide meals on time. A short-lived restaurant delivery service offered by Amazon to Prime subscribers in the United States was shut down in 2019.

An analyst with William Blair stated in a research note on Wednesday that Amazon has attempted for years to develop a third-party food marketplace and has had little success. To reestablish itself in the market, the company’s statement today “seems like a prospective cooperation strategy.”

Amazon and Grubhub have teamed up to bring Prime members access to meal delivery services

Moreover, Shackart said that Amazon may “consider acquiring the Grubhub business.”
Grubhub’s sale “continues to be actively explored,” Just Eat said in a statement on Wednesday. In the Amsterdam stock market, shares of Just Eat rose 13% on Wednesday.
New challenges and a tougher funding climate have prompted Amazon’s newest move into the food delivery market. As pandemic-related business restrictions are eased and more people return to eating out, the need for food delivery services has decreased significantly. In recent months, the industry has been hammered hard by a labour shortage and an ever-changing regulatory framework.

Amazon’s actions may cause much more havoc in the industry. There was an 8 percent drop in the share price of DoorDash this morning on the announcement, and the stock has dropped about 50 percent since January. It’s been a rough year for Uber, the company behind UberEats, which has seen its stock tumble roughly 50 percent in 2022.
According to Bloomberg’s Second Measure, DoorDash has 59 percent of the US meal delivery market, compared to Uber Eats’ 24 percent and Grubhubs’ 13 percent.

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