Amazon Prime subscribers in the United States get a new benefit as part of their subscription, the company has announced. Today, they’ll be able to redeem a free year of Grubhub Plus, the monthly subscription service that offers free food delivery on orders over $12 at participating restaurants. Grubhub Plus normally costs $9.99 per month.
According to Amazon, free deliveries associated with Grubhub Plus are available at hundreds of thousands of restaurants in more than 4,000 cities in the United States. Once the year is over, Grubhub will automatically start charging $9.99 per month for continued access. Existing Grubhub Plus subscribers can still take advantage of the promotion, which will be applied at the start of their next billing cycle. Canceling Prime automatically cancels Grubhub Plus.
The deal comes just a few years after Amazon shuttered Amazon Restaurants, its own attempt to compete in the take-out delivery market. The service was online between 2015 and 2019, but faced stiff competition from Uber Eats and DoorDash.
Since then, the e-commerce giant has focused primarily on grocery deliveries, but has kept a foothold in the take-out delivery market through partnerships with other companies. It announced a Europe-focused investment in Deliveroo in 2019 and began offering access to its Deliveroo Plus subscription service as an added benefit for Prime members in the UK last year. As part of the deal announced today, Amazon has warrants it could exercise in the future to take a 2% stake in Grubhub, a stake that could increase to 15% over time.
“Amazon has redefined convenience with Prime and we’re confident this offering will expose many new customers to the value of Grubhub Plus while driving more business for our restaurant partners and drivers,” said Grubhub CEO, Adam DeWitt, in a statement. The company, which is owned by Just Eat Takeaway.com, says it expects Grubhub Plus subscriptions to increase as a result of the deal.
GrubHub Plus isn’t the only additional benefit Amazon is announcing today for Prime members. The e-commerce giant is also preparing a short trailer for its upcoming TV show, The The Lord of the Rings: The Rings of Power, available exclusively to Prime subscribers for 48 hours. Members can watch the teaser on the show’s Amazon page. The trailer ends with yet another promise another one the teaser arrives on July 14 ahead of the series’ September 2 release.
Updated July 6 at 5:55 a.m. ET: Updated to note Amazon’s 2% stake in Grubhub.
Correction on July 7, 8:07 p.m. ET: The FinancialTimes previously reported Amazon is taking a 2% stake in Grubhub as part of the deal. In reality, like this press release United States, Amazon will receive warrants exercisable for a 2% stake, as well as additional warrants exercisable for up to 13% more.
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