has announced a new feature that allows U.S. customers to order from Grubhub directly through its shopping app and website. This expansion enhances a deal that already offers Prime members no-fee access to Grubhub+ membership.

Under this agreement, Amazon Prime members can continue to enjoy a free Grubhub+ membership, valued at $120 per year, which includes free delivery on orders over $12. This integration means Prime members can seamlessly access Grubhub’s food delivery services within the Amazon platform.

“The new deal bundles the Grubhub membership with Prime and integrates it on its app and the website. It will remain available to loyalty users ‘every year thereafter as long as they remain with Prime,'” Amazon stated.

Prime membership in the U.S. costs $139 annually and includes various benefits such as free delivery, gaming perks, savings on medical prescriptions at nearly 60,000 pharmacies, and access to Amazon Music, Prime Video, and Prime Reading. This latest move to incorporate Grubhub further enhances the value proposition for Prime members.

Amazon initially struck a deal with Grubhub, owned by Just Eat, in 2022, offering U.S. Prime members no-fee access to Grubhub+. This partnership was extended in 2023, and the new integration solidifies the relationship further.

In July 2022, Amazon secured the right to buy a 2% stake in Grubhub. According to a separate statement from Just Eat Takeaway, Amazon has received warrants representing 4% of Grubhub’s equity and may receive warrants for up to an additional 10% based on certain performance conditions.

This strategic move by Amazon not only enhances its Prime membership benefits but also makes Grubhub more appealing to potential buyers. Just Eat Takeaway has been exploring options to sell Grubhub since shortly after its acquisition.

“The important impact of this deal is that it makes GrubHub more attractive to a potential buyer, as Just Eat Takeaway has been attempting to sell it for some time now – since shortly after it made the initial acquisition,” commented Sean Kealy, an analyst at Panmure Gordon.

Amazon’s decision to integrate Grubhub’s services is likely to attract more users to its Prime membership, which had approximately 167 million subscribers in the U.S. in 2023, representing about 71% of all Amazon users in the country, according to Statista.

For more information, read the full article on Reuters.