Amazon Offers Free Food Delivery Service to Prime Customerswith Grubhub

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Amazon Prime food Delivery: Here is some good news for Amazon Prime members in the U.S. The company is going to start free Food delivery service for its Prime customers. For this purpose, Amazon has partnered with Grubhub. The announcement about the deal between the two was made on Wednesday.

Amazon Prime members can avail this offer by signing up for Grubhub+ membership. This membership will be free for one year, and after that, it will charge $9.99 per month, which is the normal fee charged by Grubhub+. 

“The value of a Prime membership continues to grow with this offer,” said Jamil Ghani, vice president of Amazon Prime, in a statement.

The prime customers of selected cities will be able to order and receive unlimited free food deliveries. The order value should be a minimum of $12. Amazon has selected 4000 plus cities for the rollout of the scheme. And there are currently 153 million Amazon Prime members in the U.S.

The owner company of Grubhub ‘Just Eat Takeaway’ has announced that there are also chances that Amazon can acquire a 2% stake in Grubhub. And if everything goes fine, Amazon will be able to become a stakeholder of up to 15% in Grubhub. Just Eat Takeaway may also think about the option of a partial or complete sale of Grubhub. But this will depend upon how things go.

After the deal, the shares of Just Eat Takeaway took a leap of 13%, and it was a significant relief to the company because its shares fell by 70% during the current year. But shares of other companies dealing in the food delivery services have fallen down. These include the companies like DoorDash, UberEats, etc. 

According to the data collected and published by Second Measure of Bloomberg, DoorDash has domination over the food delivery market. 59% of the market is covered by DoorDash, whereas 24% by UberEats and 13% by Grubhub, respectively.

With the deal, Amazon will try its luck once again in meal delivery, and if the idea becomes successful, its area of services will be widened. Earlier, Amazon tried in this area but could not succeed. Ultimately in 2019, it had to shut down its food delivery service after a short, unsuccessful run.

This deal has come at the time when the demand for meal delivery services has started reducing because now the pandemic-related restrictions are being removed, and people have started to go out for dining. Amazon has taken a chance, and time will tell how much this service remains successful.

If you are an Amazon Prime member in the U.S., you can avail this offer here. After signing in, click on the option ‘Activate free Grubhub+.’ After this, you will have to sign up for Grubhub+. And to avail of the free service, you will have to share the proof of being an Amazon Prime member as well with Grubhub+.

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