Amazon Prime Members Now Get Free Grubhub+

The partnership intends to bring “more convenience” to Prime members.

July 07, 2022

GrubHub Delivery Sign

ALEXANDRIA, Va.—Amazon and Grubhub are partnering to give all Amazon Prime members a free, one-year trial of Grubhub+, according to a news release. Grubhub+ members are not charged delivery fees when they order from restaurants, and they have access to member-only perks and rewards, including a donation match on Grubhub+ orders through Grubhub’s Donate the Change program.

Grubhub reports that more than half (53%) of adults and nearly two-thirds (64%) of millennials said that purchasing takeout and delivery food is “essential” to the way they live, but only one-third (38%) of Americans report using third-party delivery companies like Grubhub at least some of the time.

“Grubhub and Amazon are bringing more convenience to Prime members who are new to Grubhub, while adding even more value to their Prime membership, by complementing Prime’s fast, free delivery on millions of items, ultrafast grocery delivery, award-winning digital entertainment benefits and more with takeout from local restaurants,” reads the release.

“Both Grubhub and Amazon have transformed people’s lives by providing them with unprecedented choice and convenience,” said Ariella Kurshan, senior vice president of growth, Grubhub.

Amazon has a 2% stake in Grubhub, reports the Wall Street Journal. According to Grubhub’s parent company Just Eat Takeaway, Amazon could increase its total stake to 15% based on performance terms, which are focused on adding more food orders and customers to its delivery subscription program.

Just Eat Takeaway expects the partnership to increase Grubhub+ membership numbers and have a neutral impact on the division’s earnings and cash flow this year, while adding to earnings next year.

“It’s a great addition for Amazon as they attempt to one-up Walmart and disrupt restaurant home food delivery,” Jake Dollarhide told the Journal. Dollarhide is the CEO of Tulsa-based Longbow Asset Management, which owns Amazon shares and previously invested in Grubhub.

Digital orders have risen to one-third of total convenience store and restaurant food orders, up from just 12% pre-pandemic, according to a Paytronix report. While in-store sales remain down by nearly half, digital orders have remained elevated at 113% of pre-pandemic levels.

According to the NACS “Last Mile Fulfillment in Convenience Retail” report, 61% of retailers are satisfied with their third-party delivery partners. Concerns include high fees, little access to consumer data, difficulties delivering age-restricted products and service and operational issues.

Here’s what c-stores are doing to make delivery work for their businesses.