Amazon
Amazon's collaboration with Grubhub will also allow the e-commerce giant to take a 2% stake in Grubhub, and will possibly have the chance to take a 15% stake in time. This will all depend on factors such as the amount of new customers who are attracted to the deal.
One type of perk that Amazon Prime members will be rewarded is the ability to utilize Grubhub+ for free, including thousands of restaurants to choose from with no delivery costs. Around 53% of adults and 64% of millennials have relayed that takeout and delivery food is a crucial aspect of their daily lives. Only 38% of Americans, however, have signified that they utilize delivery services such as Grubhub.
"Both Grubhub and Amazon have transformed people's lives by providing them with unprecedented choice and convenience," said Ariella Kurshan, Senior Vice President of Growth at Grubhub, in a statement. "With the new Grubhub and Amazon offering, Prime members now can enjoy free delivery from hundreds of thousands of restaurants across the country, when they sign up for a year of free Grubhub+. I'm thrilled that new Grubhub diners from Amazon can get even more delivered to their door with their Prime membership."
One reason that this deal is a benefit to Grubhub is that it provides the company more marketing opportunities, since it will obtain access to Amazon Prime users across the United States. Since there are over 160 million Amazon Prime subscribers, the company will likely acquire more Grubhub consumers if the deal is solidified. From Amazon's point of view, the collaboration is beneficial because it will be able to advertise another Prime benefit without charging customers any additional money.
If this collaboration proves to be unsuccessful in the long run, then Amazon will be able to leave it without any qualms or losses. The deal is set up so that both parties will likely experience a win-win and a point of true profit will be reached.
"The value of a Prime membership continues to grow with this offer," said Jamil Ghani, vice president of Amazon Prime.
- https://about.grubhub.com/news/grubhub-and-amazon-delight-u-s-prime-members-with-free-grubhub-for-unlimited-0-food-delivery-from-restaurants/
- https://www.cnbc.com/2022/07/06/amazon-takes-stake-in-grubhub-adds-food-delivery-perks-to-prime.html
- https://www.investopedia.com/amazon-stake-grubhub-5525243
- https://www.forbes.com/sites/qai/2022/07/07/should-amazon-and-grubhubs-deal-make-doordash-nervous/