Just Eat Takeaway shares surged 15% on the Amsterdam stock exchange on the news. Amazon has more than 200 million Prime members worldwide most are based in the U.S. adults consider takeout or delivery food “essential,” but only 38% say they use third-party delivery companies.Īmazon said in a statement that the deal makes Amazon Prime membership even more valuable. Grubhub said its research shows that more than half of U.S.

In a statement, Grubhub CEO Adam DeWitt said he’s confident the offering will expose many new diners to Grubhub delivery. The partnership will automatically renew each year unless Amazon or Grubhub cancels it. Just Eat Takeaway said the agreement will have a neutral impact on Grubhub’s 2022 earnings but will be reflected in its results starting next year. Just Eat Takeaway said Wednesday it continues to explore that sale. But they have been a headache for Just Eat Takeaway, which announced in April it was considering the partial or full sale of Grubhub. It is also facing lawsuits in Chicago and Massachusetts, where officials have accused the company of deceptive practices, including advertising delivery services for restaurants without their consent. Grubhub was hurt by fee caps that dozens of cities put in place to help restaurants during the pandemic. As of May, Grubhub controlled 11% of sales, while DoorDash held 57% and Uber Eats had 31%. But rivals DoorDash and Uber Eats chipped away at that lead by offering discounted service and rapidly expanding into suburbs.

market share leader as recently as January 2019, when it controlled 31% of food delivery sales, according to market research firm YipitData. The deal could give Grubhub a much-needed boost. Amazon has an initial option to take a 2% stake in Grubhub, which could climb to 15% if certain performance conditions are met. The deal is part of a partnership between Amazon and Just Eat Takeaway, the Amsterdam-based delivery company that bought Grubhub in 2020 for $7.3 billion. Prime members free access to meal delivery service Grubhub for a year under a deal announced Wednesday.

People arrive for work at the Amazon distribution center in the Staten Island borough of New York, Monday, Oct.

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