Amazon Prime customers in the United States can get a year of free restaurant delivery through Grubhub+ as part of an offer announced Wednesday by Just Eat Takeaway.com.
Prime members have access to hundreds of thousands of restaurants on Grubhub, the American subsidiary of Anglo-Dutch company Just Eat Takeaway.
The deal should expand Grubhub+ membership while being neutral to revenue in 2022, Just Eat Takeaway said in a press release. In exchange, Amazon will receive warrants for 2% of Grubhub’s common stock, with the potential for up to 13% more Grubhub equity, depending on the number of new customers added through the joint venture.
The Amazon venture “will help Grubhub continue to fulfill our long-standing mission of connecting more diners with local restaurants,” said Adam DeWitt, Grubhub’s chief executive. “Amazon has redefined convenience with Prime and we’re confident this offering will introduce many new guests to the value of Grubhub+ while generating more business for our restaurant partners and drivers.”
In April, Just Eat Takeaway said it was considering either selling Grubhub or a joint venture with a strategic partner, after criticism from some shareholders that it should focus on Europe.
Just Eat Takeaway bought Grubhub for $7.3 billion in 2020. The US wing of the company lost 403 million euros last year.
Just Eat Takeaway said on Wednesday it would continue to “actively evaluate the sale of all or part of Grubhub,” adding that there was no certainty a deal would go through.
Just Eat Takeaway shares rose by around 20 percent to EUR 16.46. Shares are down more than 66 percent year-to-date.
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