Amazon has just signed a partnership with Just Eat Takeaway by taking a stake in Grubhub, the American counterpart of the subsidiary. Prime subscribers will enjoy a free one-year subscription to Grubhub+.
Through a press release published this Wednesday, July 6, Amazon announces entering the capital of Just Eat Takeaway. More specifically, the e-commerce giant has obtained the right to acquire 2% of the capital of Grubhub, the group’s American subsidiary. If the operation is successful, up to 13% more shares will be available.
Through this partnership, Prime subscribers in the US will enjoy free access to delivery service for one year on orders over $12. Knowing that the Grubhub+ service is now billed at $9.99 per month, this should appeal to those interested.
On the Amazon side, this alliance was forged in the hope of boosting subscriptions to its paid Prime service. “The value of subscription […] continues to grow with this offer”, said Jamil Ghani, vice president of Amazon Prime. This year, the annual cost of the subscription rose from $119 to $139 across the Atlantic: with this agreement, the company wanted to demonstrate that this increase was justified.
The Internet giant is not at its first attempt in the field of meal delivery. As a reminder, the company had stopped its Amazon Restaurants offer in 2019. In addition, last September, it announced that it was investing in the Deliveroo platform, at the same time offering free access to Deliveroo Plus to its Prime subscribers in the United Kingdom. and in Ireland.
This partnership is a real relief for Just Eat Takeaway, the parent company, which has seen its share price drop by almost 70% this year. Regarding Grubhub, the shareholders of the group demanded that the subsidiary be sold or that it find a partner. As a reminder, Grubhub was bought out for $5.8 billion in 2020. However, this agreement does not change the situation, Just Eat Takeaway having specified that the group continued to “explore the partial or total sale of Grubhub”.
Upon the announcement of this partnership, the shares of DoorDash and Uber (which owns Uber Eats), Grubhub’s main competitors across the Atlantic, fell 8 and 4% respectively on Wednesday morning.