Should Amazon And GrubHub’s Deal Make DoorDash Nervous?

Key Takeaways

  • Amazon Prime members will receive free GrubHub+ memberships as part of a new deal with GrubHub’s parent company, JustEat
  • In exchange, Amazon will receive options to purchase between 2 and 15% of JustEat, with the final figure dependent on how many new users it drives to GrubHub.
  • The market has responded positively to the move, with shares in JustEat up 12.40% so far this week.

In a move that will demoralize personal trainers across the country, GrubHub and Amazon are getting into business together. The partnership was announced by GrubHub’s Dutch parent company JustEat (try saying that five times fast), with the company’s share price responding positively to the news.

The deal will see Amazon receive stock options that represent a 2% stake in JustEat and they’ll also be given the chance to increase this to 15% if the deal works out.

And it’s not just JustEat shareholders who are the winners from this arrangement. Amazon Prime members will be receiving a year’s free subscription to GrubHub+, which gives customers free food delivery for what is usually a monthly subscription of around $10.

It’s a shot in the arm for GrubHub and JustEat, with the food delivery space coming under significant pressure in recent times. Let’s dive into this background and take a look at what this deal could mean for Amazon and GrubHub in the long term.


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