Amazon Prime’s permanent Grubhub+ subscription marks a new era of convenience for members. With free delivery on orders over $12 and access to a wide range of restaurants, Prime just got tastier.
Amazon Prime, a famous membership program that offers fast shipping and entertainment perks, has now added GrubHub+ to its benefits package. This strategy strengthens Amazon's position in the competitive loyalty program market and benefits its members significantly.
This integration simplifies the process for Prime members to enjoy free shipping on orders over $12, a benefit that aligns with Amazon's commitment to delivering value and convenience. Moreover, with Grubhub now accessible directly through the Amazon website and mobile app to all Amazon customers, this collaboration extends its benefits beyond Prime members.
This enhancement is part of Amazon's ongoing expansion of its Prime benefits, including discounted One Medical Memberships and other established benefits such as video streaming. This is a clear response to the growing competition from other major retailers, such as Wal-Mart and Target, which also compete for consumer loyalty through their loyalty programs.
In July 2022, Amazon acquired the right to a 2% stake in GrubHub, a U.S. subsidiary of Eat Takeaway.com, and increased its holding up to 15% based on performance indicators such as customer acquisition. With a new five-year agreement that could increase Amazon's stake by as much as 4% and potentially up to 10% based on GrubHUB's performance, as of the latest announcement, Amazon has received warrants representing a 4% stake in GrubHUB.
Amazon's history with food delivery started in 2015 when it launched its restaurant business. Subsequently, it discontinued it due to a focus on grocery deliveries. The company has adapted its strategy and focused on areas with high consumer demand, so it is moving to improve the selection of non-perishables and online orders from Whole Foods and Amazon Fresh supermarkets.
Amazon's innovative approach to customer satisfaction and market leadership has been demonstrated by including GrubHub+ in its Prime membership. The deepening of Amazon's relationship with Grubhub positions it favorably to take advantage of this trend and to provide its members with an even more comprehensive and attractive range of benefits as the food delivery sector continues to grow.
