Amazon this morning announced that "Prime members in the U.S. can enjoy a free, one-year Grubhub+ membership with no food-delivery fees on eligible orders. Members can use this new perk in more than 4,000 cities with hundreds of thousands of restaurants across the country when ordering on Grubhub."
The Wall Street Journal writes that as part of the deal, Amazon has an option to acquire a two percent stake in GrubHub, which is owned by Netherlands-based Just Eat Takeaway, though the parent company says it will continue to explore a sale of the US division.
The Journal goes on: "The deal brings Amazon further into food-related services through its Prime membership program. The online commerce giant has provided grocery benefits to Prime members under its Whole Foods Market division as a way to make its annual subscription program more valuable … Amazon last year said that millions of Prime members in the U.K. and Ireland would get discounts through U.K. food delivery firm Deliveroo, in which Amazon invested in 2019."
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Amazon is linking the GrubHub deal to next week's broader Prime Days promotion, which it also is using to promote its upcoming series, "The Lord of the Rings: The Rings of Power," as well as its rights for Thursday Night Football in the US.
Bolstering Prime membership always has been a major priority for Amazon, let's remember - people who are Prime members tend to spend significantly more on the site than non-Prime members.
