Amazon Prime subscribers in the US will receive a new benefit as part of the subscription, the company has announced. Today, they will be able to redeem a free year with Grubhub Plus, the monthly subscription service that offers free food delivery on orders over $ 12 from participating restaurants. Grubhub Plus usually costs $ 9.99 a month.
According to Amazon, free deliveries associated with Grubhub Plus are available from hundreds of thousands of restaurants in over 4,000 cities in the United States. After the year is over, Grubhub will automatically start charging $ 9.99 a month for continued access. Existing Grubhub Plus subscribers can still take advantage of the promotion, which will be used at the start of their next billing cycle. If you cancel Prime, Grubhub Plus will be canceled automatically.
The deal comes just a few years after Amazon shut down Amazon Restaurants, its own attempt to compete in the takeaway delivery market. The service was live between 2015 and 2019, but faced stiff competition from the likes of Uber Eats and DoorDash.
Since then, the e-commerce giant has mainly focused on grocery deliveries, but has kept a toe in the takeaway delivery market through partnerships with other companies. It announced an investment in Europe-focused Deliveroo in 2019 and began offering access to the Deliveroo Plus subscription service as an added benefit for Prime members in the UK last year. As part of the agreement announced today, Amazon has guarantees that in the future they can exercise a two percent stake in Grubhub, a stake that could increase to 15 percent over time.
“Amazon has redefined convenience with Prime, and we are confident that this offering will expose many new eateries to the value of Grubhub Plus, while providing more business to our restaurant partners and drivers,” Grubhub CEO Adam DeWitt said 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 agreement.
GrubHub Plus is not the only added benefit Amazon is announcing to Prime members today. The e-commerce giant is also making a short teaser trailer for its upcoming TV show, The Lord of the Rings: 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 up promising yet another teaser comes 14 July ahead of the launch of the series on 2 September.
Update July 6 at 05.55 ET: Updated to note Amazon’s two percent stake in Grubhub.
Correction July 7, 20:07 ET: The Financial Times previously reported that Amazon takes a two percent stake in Grubhub as part of this agreement. Actual, like this press release states, Amazon will receive warrants that can be exercised for a stake of two percent, as well as additional warrants that can be exercised over up to 13 percent more.