Amazon Prime subscribers in the US are getting a new perk as part of their subscription, the company announced. Today, they’ll be able to redeem a free year of Grubhub Plus, the monthly subscription service that offers free food delivery on orders over $12 from participating restaurants. Grubhub Plus normally costs $9.99 per month.
According to Amazon, free deliveries associated with Grubhub Plus are available from hundreds of thousands of restaurants in more than 4,000 US cities. After the year is up, Grubhub will automatically start charging $9.99 per month for continued access. Existing Grubhub Plus subscribers can still take advantage of the promotion, which will be applied at the beginning of their next billing cycle. Canceling Prime automatically cancels Grubhub Plus.
“We’re confident this offering will show many new visitors the value of Grubhub Plus”
The deal comes just a few short years after Amazon shuttered Amazon Restaurants, its own attempt to compete in the takeout market. The service was live between 2015 and 2019, but faced stiff competition from Uber Eats and DoorDash.
Since then, the e-commerce giant has focused mainly on grocery delivery, but has kept its fingers in the home delivery market through partnerships with other businesses. In 2019, the company announced an investment in Europe-focused Deliveroo, and last year began offering access to its subscription service Deliveroo Plus as an added benefit to Prime members in the UK. As part of the deal announced today, Amazon has warrants it can exercise in the future to take a two percent stake in Grubhub, a stake that could increase to 15 percent over time.
“Amazon is redefining convenience with Prime, and we’re confident this offering will expose many new diners to the value of Grubhub Plus, while driving more business for our restaurant partners and drivers,” Grubhub CEO Adam DeWitt said in a statement. The company, which owns Just Eat Takeaway.com, says it expects Grubhub Plus subscriptions to grow as a result of the deal.
GrubHub Plus isn’t the only additional benefit Amazon is announcing for Prime members today. The e-commerce giant also made a short teaser trailer for its upcoming TV show, The Lord of the Rings: The Rings of Power, available exclusively to Prime subscribers for 48 hours. Members can watch the teaser on the show’s Amazon page. The trailer ends with the promise that another teaser is coming on July 14 before the series premieres on September 2.
Update July 6, 5:55 a.m. ET: Updated to note Amazon’s two percent stake in Grubhub.
Correction July 7, 8:07 p.m. ET: The Financial Times previously reported that Amazon is taking two percent of Grubhub as part of this deal. In fact, as stated in this press release, Amazon will receive warrants exercisable for a two percent stake, as well as additional warrants exercisable for up to 13 percent more.
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