Amazon has made Uber Eats as its official restaurant delivery partner for Prime members in the United States, effectively ending the e-commerce giant’s existing deal with Grubhub.
Under the new partnership announced Thursday, Amazon Prime members will be able to order food from Uber Eats directly through Amazon.com and the Amazon Shopping app. Importantly, Prime members won’t need to create an Uber account and won’t pay a delivery fee on orders of more than $25, the companies said.
The commercial agreement with Grubhub that gave Prime members access to Grubhub+ ends Thursday, according to an Amazon spokesperson, who said the company continuously evaluates its third-party offers. Amazon said that through that process it identified an opportunity to deliver an even better restaurant delivery experience.
The new partnership deepens an already extensive relationship between Amazon and Uber. The companies have existing agreements spanning cloud computing, Zoox robotaxis, and the integration of Uber Eats into Amazon’s AI-powered Alexa+ assistant.
It also allows Amazon to give its Prime members another sweetener to justify that annual membership fee. To help kickstart the initiative, Amazon and Uber are offering Prime members $20 off their first order of $25 or more during the first two weeks.
Amazon’s ouster of Grubhub ends a once-close relationship. Amazon first struck a deal with the company in 2022, offering Prime members a free Grubhub+ subscription.
Two years later, Amazon expanded its commercial agreement and made the free Grubhub+ membership an ongoing offer for Prime members. Amazon also reached a deal with Grubhub’s then-owner, Just Eat Takeaway.com, to increase its equity stake in the food delivery company as much as 18%.
Under that performance-based agreement, which was set to renew annually, Amazon could receive warrants representing an additional stake in Grubhub. But just months later, Just Eat Takeaway announced plans to sell Grubhub to Wonder. According to Just Eat Takeway’s annual report, Amazon elected in December 2024 to cash out on its outstanding exercisable warrants.
Amazon and Grubhub’s commercial partnership continued, however, until now.
Grubhub could not be reached prior to publication. TechCrunch will update this article, if the company responds.
Source: techcrunch.com
