Amazon ramps up presence in takeaway market with Grubhub partnership

Amazon customers in the US can now order takeaway deliveries from Grubhub without leaving the tech giant’s app. 

The state side deal is part of a deepening relationship between the tech giant and Grubhub, which is a subsidiary of Dutch owned JustEat. 

Amazon customers in the US will have access to hundreds of thousands of restaurants in all 50 states with Grubhub directly on Amazon.com and in the Amazon Shopping app. 

Additionally, as long as a customer remains an Amazon Prime member, they will receive a free ongoing Grubhub+ membership worth $120 (£94)  a year, without automatically renewing into a paid Grubhub+ membership. 

The Jeff Bezos backed business has held a three per cent stake in Grubhub since 2022, but said this may increase to 10 per cent if the company reaches certain performance targets, such as increases in the number of customers. 

Amazon once ran a delivery service similar to Deliveroo and Just Eat, but shuttered the business as it turned its focus to its physical, cashier-less supermarkets.

Just Eat has continued to perform well in the UK and Irish markets, but its American arm has lagged behind. 

In the first quarter of 2024, Gross transaction value (GTV) dropped two per cent to €6.55bn (£5.58bn) as North America, Southern Europe and ANZ regions all underperformed.