Amazon Partners with Grubhub, Prime Subscribers get a Surprise Freebie for a year

The ‘prime’ move of the e-commerce giant will benefit both Amazon and the food delivery firm.

Reuters
Amazon, the e-commerce giant, has announced a ‘prime’ partnership with Dutch multinational food ordering and delivery company Grubhub in the US. The strategy by both companies is likely to boost their respective businesses by attracting more users. According to the latest development, Amazon Prime members will be given a free annual subscription to Grubhub, which is owned by Just Eat TakeAway.

As part of the deal, the Prime subscribers will be getting a free Grubhub Plus subscription for a year. Grubhub normally charges $9.99 for a month in which orders above $12 from associated restaurants will be delivered free of cost. The service is available across 4,000 cities in the US. After the end of the free subscription, Grubhub will start charging the same amount for continuing access to the service. Existing Grubhub Plus users can also take benefit of the new scheme, which will be automatically applied once their billing cycle ends.

The deal has been announced just after a few years when Amazon, tried to build its own cost-effective Amazon Restaurants food delivery service in the US. The company suspended the business five years later in 2019 due to poor response. The latest deal will give Amazon 2 per cent equity in Grubhub (Just Eat Takeaway) which means it is worth millions of dollars. The stake could increase to 15 per cent over time.


According to the CEO of Grubhub Adam DeWitt, the partnership with Amazon will redefine the business and attract new diners to Grubhub Plus, ultimately driving more business. Apart from this, Amazon has also created a teaser trailer for its upcoming TV series Lord of the Rings for the Prime users. The teaser, which has been released, can be seen on Amazon's home page. The epic drama series will release in the first week of coming September.
Download
The Economic Times Business News App
for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App
for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
READ MORE
ADVERTISEMENT

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Business News › News › International › US News › Amazon Partners with Grubhub, Prime Subscribers get a Surprise Freebie for a year
Text Size:AAA
Success
This article has been saved

*

+