Amazon Prime customers in the United States can receive free restaurant delivery via Grubhub+ for a year under a deal announced Wednesday by Just Eat Takeaway.com.
Prime members get access to hundreds of thousands of restaurants on Grubhub, the American branch of the Anglo-Dutch company Just Eat Takeaway.
The deal should expand Grubhub+’s membership while having a neutral impact on 2022 revenue, Just Eat Takeaway said in a press release. In return, Amazon will receive warrants for two percent of Grubhub’s common stock, with the potential for up to 13 percent more of Grubhub’s equity, depending on the number of new customers added through the company.
The Amazon company “will help Grubhub continue to fulfill our long-standing mission to connect more diners with local restaurants,” said Adam DeWitt, Grubhub’s Chief Executive. “Amazon has redefined convenience with Prime and we are confident that this offering will introduce many new diners to the value of Grubhub+ while increasing business to our restaurant partners and drivers.”
In April, Just Eat Takeaway said it was considering selling Grubhub or a company with a strategic partner following criticism from some shareholders that it should focus on Europe.
Just Eat Takeaway bought Grubhub in 2020 for $7.3 billion. The American wing of the company lost 403 million euros last year.
Just Eat Takeaway said on Wednesday it “continues to actively investigate the partial or full sale of Grubhub”, adding that there was no assurance that a agreement would happen.
Shares of Just Eat Takeaway rose by about 20 percent to 16.46 euros. Shares are down more than 66 percent since the start of the year.
© 2022 AFP
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