Amazon Will Take Stake in Grubhub, Offer Prime Users Membership

The logo for the Grubhub Inc. application is displayed on an Apple Inc. iPhone in an arranged photograph taken in the Brooklyn borough of New York, U.S., on Friday, April 10, 2020. Grubhub, the parent of food delivery app Seamless, said last month it was deferring fees for independent restaurants using the service in response to the coronavirus pandemic. Photographer: Gabby Jones/Bloomberg , Bloomberg

Amy Thomson, Bloomberg News

Jul 6, 2022

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(Bloomberg) -- Amazon.com Inc. has agreed to take a stake in Just Eat Takeaway.com NV’s Grubhub and will offer its U.S. Prime users a one-year membership to the food delivery service. 

The membership agreement will renew every year unless Amazon or Grubhub terminates it, Just Eat said in a statement on Wednesday. Amazon will also receive the equivalent of a 2% stake in Grubhub’s common equity with options to increase the holding to 15%. 

Just Eat will continue to explore a partial or full sale of Grubhub, the company said. The deal will be neutral for Grubhub’s financial results this year and be accretive to cash flow and earnings starting in 2023. 

 

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