Amazon Abandons Grubhub to Collaborate with Uber Eats for Prime Members
TechCrunch
28m ago
Ai Focus
Amazon announces that Uber Eats will become its official food delivery partner in the United States for Prime members, effectively ending the existing partnership with Grubhub. Prime members can place orders directly through the Amazon.com and Amazon Shopping apps, and there is no delivery fee for orders over $25.
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Amazon has designated Uber Eats as its official food delivery partner in the United States for members of Prime, effectively ending the existing cooperation between this e-commerce giant and Grubhub.

According to the new collaboration announced on Thursday, Amazon Prime members will be able to order meals from Uber Eats directly through the Amazon.com and Amazon Shopping apps. The company stated that it is important to note that Prime members do not need to create a Uber account, and there is no delivery fee for orders over $25.

An Amazon spokesperson stated that the commercial agreement allowing Prime members to use Grubhub+ will end on Thursday, and mentioned that the company will continue to evaluate its third-party discounts. Amazon said that during this process, the company identified opportunities to provide a "better dining delivery experience."

This new collaboration further deepens the already extensive relationship between Amazon and Uber. The existing cooperation between the two parties covers cloud computing, Zoox autonomous taxis, as well as integrating Uber Eats into Amazon's artificial intelligence assistant Alexa.

This also allows Amazon to offer another benefit to Prime members, to demonstrate the value of their annual membership fee. To promote this collaboration, Amazon and Uber will also provide a discount to Prime members: for their first order within the first two weeks, if it amounts to $25 or more, they can get $20 off.

Amazon excluded Grubhub and ended the once close relationship between the two parties. Amazon first reached an agreement with that company in 2022 to provide free Grubhub plus subscriptions for Prime members.

Two years later, Amazon expanded its business agreement and turned the free Grubhub + membership into a long-term benefit for Prime members. Amazon also reached an agreement with the then Grubhub parent company, Just Eat Takeaway.com, to increase its equity stake in this food delivery company to a maximum of 18%.

According to this performance-based agreement, which was originally intended to be renewed annually, Amazon was supposed to receive warrants representing an additional stake in Grubhub. However, a few months later, Just Eat Takeaway announced plans to sell Grubhub to Wonder. According to the annual report of Just Eat Takeaway, Amazon chose to exercise its unexercised warrants in December 2024.

However, the business cooperation between Amazon and Grubhub has continued to this day.

Grubhub could not be contacted before publishing this article. If the company responds, TechCrunch will update this article accordingly.

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