What Amazon Prime’s Deal With Grubhub Means for Consumers

Under earnings pressure after a big loss last year, the food distribution company Grubhub struck a deal with Amazon on Wednesday, offering restaurant delivery services without a fee for Amazon Prime members.As of Wednesday, the premium service, called Grubhub+, is now a free perk for Amazon Prime customers. Here is what we know.What is Grubhub+?Grubhub+ is a membership service, introduced in 2020, that costs $9.99 a month. It cancels delivery fees on orders that total $12 or more before taxes, tips and other fees. Amazon Prime members (including those who are already Grubhub+ members) will get a free year of Grubhub+.Customers should then click on “Activate free Grubhub+.” The next screen will ask Prime members to sign in or create an account with Grubhub’s screen. Users can also sign in the same way if they have a Seamless or Seamless+ account.After agreeing to terms and conditions, and agreeing to share proof of their Prime membership to Grubhub, customers can use the perk.Why was this deal made?The pandemic initially gave a boost to food service businesses like Grubhub, the company suffered losses in 2021 — about $410 million. But the lifting of pandemic restrictions throughout the country drove down demand for restaurant delivery.The deal with Amazon, which already owns a stake in the struggling British food delivery service Deliveroo, will give Grubhub more cash flow in 2023.Though this agreement with Amazon is only a year long, it will automatically renew annually unless Amazon or Grubhub opts out.

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