Amazon is giving Prime members free Grubhub subscriptions. This enhances the $139-a-year loyalty program.
Previously, Prime members got a year of free Grubhub, including free delivery on orders over $12. Now, the food-delivery service is a permanent perk. Non-Prime users can also order Grubhub through Amazon’s website and app.
Amazon has been adding more benefits to Prime. They aim to attract and retain members. Competitors like Walmart and Target are ramping up their loyalty programs too.
The company added discounted One Medical memberships. Other perks include fast shipping and video streaming.
In July 2022, Amazon got rights to a 2% stake in Grubhub. They could increase it to 15% with good performance, like new customer numbers.
Just Eat announced Amazon now holds warrants for a 4% stake in Grubhub. A new five-year deal could add another 4%. Amazon might get warrants for up to 10% more, based on performance.
Amazon used to run its own food-delivery service. It competed with Grubhub, Uber Eats, and DoorDash. Amazon Restaurants launched in 2015 for Prime members.
They shut it down four years later. Amazon shifted focus to grocery delivery. They expanded nonperishable items and pantry staples online.
Now, Amazon also offers online ordering from Whole Foods and Fresh supermarkets. This boosts their grocery delivery options further.