In the past, Amazon attempted to enter the meal delivery market, but was generally unsuccessful in the U.S. Amazon is able to add meal deliveries as an additional perk for Prime members and maintain some upside in the partnership’s performance (through warrants of up to 15% of Grubhub’s equity). We believe the deal will benefit both firms. Just Eat is our top pick in the food delivery segment. We retain our EUR 126 fair value estimate and narrow moat rating for Just Eat. The second tranche of warrant vests largely depend on the number of new customers obtained as a result of this relationship, but the exercise price was not specified in the media announcement (formula-based price). Amazon will obtain warrants over 2% of Grubhub’s fully diluted common equity and up to an additional 13% of Grubhub’s common equity in conjunction with the commercial agreement. The business anticipates the relationship will increase membership in Grubhub Plus while having a neutral impact on Grubhub’s profits and cash flow in fiscal 2022, and a positive impact beginning in fiscal 2023. Does the added perk of Grubhub+ make it a more compelling subscription? It’s entirely possible.On July 6, Just Eat Takeaway ( TKWY) announced a business partnership with Amazon in the United States allowing Amazon Prime members to join up for a free Grubhub Plus subscription for one year (free delivery from selected restaurants plus member-only perks and rewards). It feels like Amazon has continued to bolster the Prime subscription benefits as the company has slowly increased the membership pricing. Plus, Amazon’s Fire TV Cube and Fire TV Stick are on sale. The TVs include Amazon’s Fire TV 4-Series and Omni Series, Hisense U6 Series, Insignia, Pioneer, and Toshiba. Now through July 11th, Prime members can save up to 15% on home accessories and electronics on NFL licensed products in the Fan Shop.Īmazon is also putting a bunch of smart TVs and accessories on sale through July 11th. In addition to free Grubhub deliveries, Amazon is also celebrating Thursday Night Football coming to Prime Video this fall. You can cancel any time by visiting the “Grubhub+ membership” section in your Grubhub account settings. When your free, one-year membership ends, Grubhub will immediately charge the payment method associated with your Grubhub account $9.99. If you do decide to take advantage of the offer, know that the subscription will auto-renew after a year. I’m thrilled that new Grubhub diners from Amazon can get even more delivered to their door with their Prime membership. 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+. Amazon also announced that the company has an option to purchase anywhere from 2% to 15% of Grubhub’s parent company Just Eat .Īriella Kurshan, Senior Vice President of Growth at Grubhub, shared this statement:īoth Grubhub and Amazon have transformed people’s lives by providing them with unprecedented choice and convenience. Amazon says that free deliveries through Grubhub+ are available at hundreds of thousands of restaurants in more than 4,000 cities around the US. The service also offers exclusive perks and rewards such as free food and discounts. Grubhub+ includes unlimited, $0 food delivery fees on orders over $12.
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