Breaking News
More () »

Amazon bringing Grubhub+ to Prime users after striking deal

It's not Amazon's first foray into the competitive world of restaurant food delivery platforms.

SEATTLE — Amazon announced a deal with Grubhub's parent company Wednesday, adding another service for Prime members. 

Amazon said Prime members can now get a free one-year Grubhub+ membership. The membership usually costs $9.99 a month and gives users free delivery on orders of more than $12. The deal was announced as part of Prime Day promotions. 

RELATED: Amazon Prime memberships just got more expensive for existing members

RELATED: Amazon Prime Day 2022: Deals coming July 12 and 13

Grubhub's Dutch parent company, Just Eat Takeaway.com, hopes the deal will bring more customers to Grubhub+. It said Amazon will receive options for a 2% stake in the platform, and up to another 13% if the deal helps Grubhub bring in enough customers. 

Amazon shut down its own restaurant food delivery service, Amazon Restaurants, in 2019. The four-year-old business had failed to take off amid stiff competition from Uber Eats, Doordash and other platforms like Grubhub.

Just Eat said it is still pursuing full or partial sales of Grubhub, which it acquired for $7.3 million in 2020.

RELATED: Just Eat swallows Grubhub creating restaurant delivery giant

Takeaway.com and Grubhub, both founded in the early 2000s, were pioneers in the restaurant-delivery world. Competitors including Uber Eats, DoorDash and Postmates soon jumped in.

Customers jump freely between the services, making stable sales a tall order. Aggressive discounting and heavy marketing costs to win new users have also taken a toll on profits, and restaurants have been pushing for lower fees.

RELATED: Restaurants, delivery apps still at odds as demand grows

Just Eat Takeaway.com provides deliveries in Europe, Australia, Israel, New Zealand, Canada, Mexico and Brazil. Grubhub operates in 4,000 U.S. cities. 

The Associated Press contributed.

Before You Leave, Check This Out