Amazon Prime Members Can Take Advantage of Free Grubhub+ Membership

Members of Amazon Prime have already enjoyed free delivery for their orders on Amazon’s platform, and now they may be able to order food for free with Grubhub+. Amazon and Grubhub have made a deal to offer free Grubhub+ for Prime members.

In the deal, Amazon can potentially gain 2 percent equity in Grubhub, as well as an additional 13 percent depending on performance.

Amazon Prime members have access to a free one-year subscription to Grubhub+, a new perk that’s a part of Amazon’s new deal with Grubhub. The free one-year subscription launches Wednesday, July 6 just ahead of Prime Day 2022. Amazon will offer various discounts on its website from July 12–13. “Being able to give Prime members one year of Grubhub Plus and no delivery fees from restaurants is our way of saying ‘thank you’,” said Jamil Ghani, the Vice President of Amazon Prime.

Grubhub+ is a loyalty program that was launched by the company in 2020 and was even nicknamed “the Amazon Prime of food delivery” at the time. It offers free delivery on eligible orders, along with other perks and rewards. The membership costs $9.99 per month, but there's also a free 30-day trial offered. After the trial expires, the membership automatically renews and Grubhub will continue to charge the member until they cancel their membership.

The loyalty program offers free delivery on orders of at least $12 from participating restaurants. Members can also donate to charity at checkout, and Grubhub will match the donation. There are exclusive perks and rewards offered such as occasional promo codes or discounts at specific restaurants. There are over 300,000 restaurants that use Grubhub, but not all of those locations participate in the loyalty program. Users can filter through restaurants that are a part of Grubhub+.

Orders that include alcoholic products aren't eligible for free delivery. Catering orders, group orders, and orders for college campus locations may not be eligible for the free delivery either, subject to Grubhub’s discretion. Amazon Prime members will have to cancel at least 24 hours prior to the renewal date in order to avoid being charged the regular $9.99 fee once the free one-year subscription expires.

Just Eat Takeaway is the parent company of Grubhub, after acquiring it in 2020 for $7.3 billion in an all-stock deal. Currently priced at around $15.86, Just Eat share prices increased by 15 percent when the Euronext stock exchange opened on July 6

For most of 2022, the company’s stock has been down, especially with reports swirling that Just Eat is exploring partially or fully selling Grubhub. With the merger deal only happening about two years ago, it could go down as one of the worst sales in history and would wipe out a significant portion of its valuation if Just Eat does sell the subsidiary.