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Amazon partners with Grubhub, offers Prime members free delivery. (credits: Google)
Grubhub now accepts orders from Amazon Prime subscribers without charging a delivery fee.
After a year, Prime members will automatically be charged the current monthly amount of $9.99 for Grubhub+, which is $9.99. To avoid the cost, orders must be a minimum of $12.
The arrangement between Amazon and Just Eat Takeaway, the parent company of Grubhub, granted the e-commerce giant the option to purchase a 2 percent ownership in Grubhub even as it continues to investigate selling the food delivery service.
In the US, there are around 153 million subscribers to Amazon Prime.
According to Grubhub CEO Adam DeWitt, “We’re sure that this option will introduce many new customers to the value of Grubhub+ while driving more business to our restaurant partners and drivers.”
Grubhub’s growth has halted after experiencing a pandemic rise as consumers are shifting back to in-person dining and, increasingly, takeout orders. Takeout now makes up the bulk of all digital orders, according to research released in May by Paytronix, a consultancy company that offers advice to restaurants, retail chains, and convenience stores.
As opposed to before and during the height of the pandemic, takeout orders now outnumber delivery orders in terms of volume, according to more recent data, according to Paytronix. Takeout orders “jumped from approximately 35 percent of orders in January 2020 to a majority in March of 2022, a trend that appears to be increasing,” the company added.
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