Amazon names Uber Eats as official restaurant delivery partner for Prime members

Amazon has announced a new partnership with Uber Eats that allows Prime members to order from restaurants through Amazon.com and the Amazon app. Under the terms of the agreement, Prime members will receive free delivery on orders of $25 or more and will not need to create an Uber account to place orders.

Transition from Grubhub

This new agreement effectively ends Amazon's existing deal with Grubhub. According to an Amazon spokesperson, the company's commercial agreement with Grubhub, which provided Prime members access to Grubhub+, ends Thursday. The spokesperson stated that the company "continuously evaluates its third-party offers" and that Amazon "identified an opportunity to deliver an even better restaurant delivery experience."

A Grubhub spokesperson confirmed the agreement is ending. Prime members who have already activated Grubhub+ will be able to continue using that membership through December 31, 2027.

Partnership Details and Competition

To initiate the partnership, Amazon and Uber are offering Prime members $20 off their first two orders of $25 or more during the first 14 days.

Amazon Prime costs $140 a year and includes access to Prime Video and Amazon Music. Uber also offers a service called Uber One, which costs $9.99 a month or $96 per year and includes no delivery fees on food and groceries.

This move comes amid increased competition in the delivery and grocery sectors:

• Amazon has been adding items to its grocery options, reporting it added more than 6,000 items over the last six months.
• Walmart offers a bundle for Walmart+ and Sam's Club Plus for $120 a year, plus tax.
• DoorDash has announced plans to acquire Instacart in a $17 billion deal to compete in the online grocery market.

Existing Ties

Amazon and Uber maintain several existing agreements, including cooperation on cloud computing, Zoox robotaxis, and the integration of Uber Eats into Amazon’s AI-powered Alexa+ assistant.

Why it matters

Amazon is attempting to increase the value of its Prime membership by expanding its service offerings into restaurant delivery. This shift follows a period of changing ownership and equity stakes involving Grubhub, including a 2024 decision by Amazon to cash out on outstanding warrants following Just Eat Takeaway's plans to sell Grubhub to Wonder.

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Sources

• finance.yahoo.com: Amazon partners with Uber Eats to bring restaurant delivery to Prime members
• techcrunch.com: Amazon ditches GrubHub, taps Uber Eats for Prime | TechCrunch

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.