Amazon is giving its Prime members free access to Grubhub meal delivery service for a year.
Grubhub has denied the charges. But they have been a headache for Just Eat Takeaway, which announced in April it was considering the partial or full sale of Grubhub. Just Eat Takeaway said Wednesday it continues to explore that sale.
Just Eat Takeaway said the agreement will have a neutral impact on Grubhub’s 2022 earnings but will be reflected in its results starting next year. The partnership will automatically renew each year unless Amazon or Grubhub cancels it. In a statement, Grubhub CEO Adam DeWitt said he’s confident the offering will expose many new diners to Grubhub delivery. Grubhub said its research shows that more than half of U.S. adults consider takeout or delivery food “essential,” but only 38% say they use third-party delivery companies.
Amazon said in a statement that the deal makes Amazon Prime membership even more valuable. Amazon has more than 200 million Prime members worldwide; most are based in the U.S. Just Eat Takeaway shares surged 15% on the Amsterdam stock exchange on the news. DoorDash shares fell 7% on the New York Stock Exchange.
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