Amazon.com Inc. agreed to add Grubhub to its suite of Prime services in the U.S., in a deal that also gives the e-commerce giant the option to acquire a small stake, the parent of the food-ordering company said.
Grubhub’s parent, Netherlands-based Just Eat Takeaway.com NV
has an initial option to take a 2% stake in U.S.-based Grubhub, and U.S. Prime members can have their delivery fees waived from select restaurants. Amazon could bump up its total stake to 15% of Grubhub based on performance terms focused on adding new customers, Just Eat said.
Just Eat will still own Grubhub and will continue exploring a full or partial sale of Grubhub, it said. The deal will renew annually unless either Amazon or Just Eat terminates it and it is expected to materially add to Grubhub’s business next year, Just Eat said.
The deal brings Amazon further into food-related services through its Prime membership program. The online commerce giant has provided grocery benefits to Prime members under its Whole Foods Market division as a way to make its annual subscription program more valuable.