Under revenue pressure following a major loss last year, food distribution company Grubhub entered into an agreement with Amazon on Wednesday, offering delivery services for restaurants free of charge to Amazon Prime members.
As of Wednesday, the premium service, called Grubhub +, is now a free benefit for Amazon Prime customers. Here’s what we know.
What is Grubhub +?
Grubhub + is a membership service, introduced in 2020, that costs $ 9.99 a month. It cancels delivery charges on orders totaling $ 12 or more before taxes, tips and other fees. Amazon Prime members (including those who are already Grubhub + members) will receive a free year of Grubhub +.
Customers should then click on “Activate free Grubhub +.” The next screen will ask Prime members to log in or create an account with Grubhub’s screen. Users can also log in in the same way if they have a Seamless or Seamless + account.
After agreeing to the terms and conditions and agreeing to share proof of their Prime membership to Grubhub, customers can take advantage.
Why was this agreement entered into?
The pandemic originally gave a boost to food service companies such as Grubhub, the company suffered losses in 2021 – around 410 million dollars. But the lifting of pandemic restrictions across the country drove down demand for restaurant delivery.
The agreement with Amazon, which already owns a stake in the struggling British food delivery service Deliveroo, will give Grubhub more cash flow in 2023.
Although this agreement with Amazon is only one year long, it will automatically be renewed annually unless Amazon or Grubhub opt out.