Amazon (NASDAQ: AMZN) and Grubhub (LSE: JET, AMS: TKWY) have announced a significant partnership that aims to streamline restaurant delivery services for Amazon customers across the U.S. Starting May 30, Amazon customers can order from hundreds of thousands of restaurants directly through Amazon.com and the Amazon Shopping app, integrating Grubhub’s extensive restaurant network into Amazon’s platform.

Comprehensive Benefits for Amazon Prime Members

As part of this collaboration, Amazon Prime members will benefit from an ongoing Grubhub+ membership valued at $120 annually, at no extra cost, as long as they remain Prime members. This membership includes $0 delivery fees on orders over $12, reduced service fees, a 5% credit back on pick-up orders, and access to exclusive offers. This integration not only enhances the value of Amazon Prime but also makes food delivery more affordable and convenient.

Jamil Ghani, Vice President of Amazon Prime, highlighted the added value for Prime members: “Whether it’s saving money on your favorite takeout with Grubhub+, exclusive deals on Prime Day, or free shipping on over 300 million items, Prime keeps getting better for members. We know Prime members value savings on food delivery, so we are extending the $0 delivery fees and exclusive savings with Grubhub+ for Prime members.”

A Seamless Integration for Users

This partnership allows Amazon customers to seamlessly use Grubhub through the Amazon website and app, eliminating the need to switch platforms or download additional apps. The user experience mirrors that on Grubhub’s own platforms, with identical pricing and payment structures for restaurant partners and delivery personnel.

Howard Migdal, CEO of Grubhub, expressed enthusiasm about the partnership: “We’re thrilled to build on our successful collaboration with Amazon and bring more convenience to Amazon customers by offering Grubhub’s network of hundreds of thousands of restaurants directly on Amazon.com and in the Amazon Shopping app.”

Economic Impact and Market Implications

Since the initial Grubhub+ offer in 2022, Amazon reports that Prime members have saved hundreds of millions of dollars through waived subscription fees and additional discounts, with active users saving an average of $300 annually. This partnership not only boosts Amazon’s and Grubhub’s market presence but also sets a new standard in customer convenience and savings in the food delivery sector.

Furthermore, from now until June 2, Prime members can enjoy an additional $5 off on Grubhub orders over $25 with the promo code “PRIME5”, enhancing the savings during the initial launch phase of this partnership.

  Amazon, Amazon Prime, food delivery service, Grubhub, Grubhub+ membership, online food ordering, restaurant delivery