Dive Brief:

• Amazon and Grubhub have expanded their relationship. Starting Thursday, Amazon customers can order Grubhub restaurant delivery on Amazon’s site and Shopping app, the companies said in a press release.
• Amazon Prime members can now receive an ongoing Grubhub+ membership, worth $120 annually, instead of the previous offer of a one-year trial. Prime members will also receive $5 discount on a Grubhub order over $25 through June 2. 
• Grubhub and Amazon have partnered since 2022 when they began offering one year of free Grubhub+ membership to Prime members.

Dive Insight:

The additional benefit of ongoing Grubhub+ attached to Prime membership means over 175 million Amazon Prime subscribers have access to Grubhub’s premium membership benefits, while also adding a new channel for orders, which could help grow the delivery firm’s market share. As of March, Gruhbub held about 8% of the food delivery market share in the United States, versus DoorDash’s 67% and Uber Eats’ 23%, according to Bloomberg Second Measure data.

This partnership is similar to Uber Eats’ partnership with Instacart, which offers restaurant delivery via Uber Eats within Instacart’s platform. Grubhub’s partnership with Amazon was originally seen as an opportunity to increase competitiveness and grow.

Amazon customers can order food delivery through Amazon without needing to download the Grubhub app or order via Grubhub. The available restaurants and listed menu prices are the same as what a customer would see on Grubhub’s platforms, the companies said. 

This isn’t the first time Amazon has permitted restaurant delivery through its website; it offered Amazon Restaurants for several years until shuttering operations in 2019 following competitive pressures and trouble scaling in large metros.

Amazon’s partnership with Grubhub gives the e-commerce giant another benefit to offer to Prime members, who can already order free two-hour grocery delivery, access medical care through OneMedical and listen to music, among other membership benefits. Grubhub+ offers $0 delivery fees on eligible orders, lower service fees, 5% cash back on pickup orders and other consumer perks.