Amazon Prime has announced that it will continue to offer Grubhub subscriptions to its members in the United States. This move comes two years after Amazon acquired a minority stake in the food delivery platform. According to Amazon, all Prime members in the US will now be able to use Grubhub’s service to order food from hundreds of thousands of restaurants across all 50 states.
Previously, Amazon had offered Prime members a one-year subscription to Grubhub’s food delivery perk, which included free delivery on orders over $12, lower service fees, 5 percent credit back on pick-up orders, and exclusive offers. However, the company has now decided to make the food delivery service a permanent part of its Prime membership program. The Prime membership program costs $14.99 per month or $139 per year, while the Grubhub+ subscription service typically costs $120 annually.
According to Amazon, since the introduction of the Grubhub+ offer in 2022, Prime members have saved “hundreds of millions of dollars” in waived subscription fees and discounts. The company claims that Prime members who place at least one order a month save an average of $300 per year in delivery fees and promotions with the Grubhub+ offer.
Amazon’s decision to include Grubhub subscriptions in its Prime membership program is part of its strategy to expand and compete with rivals like Walmart and Target. In 2019, Amazon attempted to launch its own food delivery service called Amazon Restaurants but was unsuccessful. As an alternative, the company acquired a 2 percent stake in Grubhub in 2022, with the possibility of increasing its stake to 13 percent depending on new Prime members’ adoption of Grubhub through the promotion.
The announcement of the ongoing Grubhub subscription offer for Prime members comes at a time when Amazon is facing legal challenges. A federal judge recently denied Amazon’s request to dismiss a lawsuit filed by the Federal Trade Commission (FTC), which accused the company of deceiving users into signing up for Prime memberships and making it difficult for them to unsubscribe. Amazon has denied these allegations and stated that it is committed to providing a clear and simple process for customers to both sign up for and cancel their Prime memberships.
Overall, this announcement is a significant development for Amazon Prime members in the US, as it provides them with a valuable food delivery perk at no additional cost. By including Grubhub subscriptions in its membership program, Amazon aims to enhance the value proposition of Prime and encourage customer loyalty. As Amazon continues to face competition in the retail space, these types of added benefits can help differentiate its offerings and attract and retain customers.
