(Refiles to correct syntax in point 7)
(Reuters) – Amazon.com on Thursday said its U.S. customers can now order from Grubhub directly from its shopping app and website, extending a deal that already offers Prime members free access to a Grubhub+ membership.
As part of the deal, Amazon (NASDAQ:) Prime members will continue to be eligible for a free $120 per year Grubhub+ membership, which includes free shipping on orders over $12.
Amazon already offers US Prime members free access to Just Eat Takeaway.com’s Grubhub. The initial deal was for a year in 2022, and the companies then extended it for another year in 2023.
The new deal combines Grubhub membership with Prime and integrates it into the app and website. It will be available to loyalty program users “every year thereafter for as long as they remain with Prime,” Amazon said.
Prime membership in the US costs $139 per year and includes free shipping, gaming benefits, savings and discounts on medical prescriptions at nearly 60,000 pharmacies, access to Amazon Music, Prime Video and Prime Reading.
Amazon received the right to buy a 2% stake in Grubhub in July 2022.
In a separate statement, JustEat Takewaway said Amazon has received warrants representing 4% of Grubhub’s equity and may also receive warrants for an additional 10% of Grubhub’s equity, subject to certain performance conditions.
“An important implication of this transaction is that it makes GrubHub (NYSE:) more attractive to a potential buyer, as Just Eat Takeaway has been trying to sell it for some time – shortly after it made the initial acquisition,” Sean Kiely said. This was stated by analyst Panmure Gordon.
About 167 million Amazon customers in the U.S. signed up for Prime in 2023, representing roughly 71% of all users in the country, according to data platform Statista.