Amazon ditches Grubhub for Uber Eats partnership
Published in Business News
Amazon has swapped its partnership with Grubhub, a distant third in the food delivery marketplace, for a similar arrangement with Uber Eats in a deal announced Thursday.
Amazon Prime members can now order food from Uber Eats directly through Amazon and pay no delivery fee on restaurant orders of $25 or more.
The deal with San Francisco-based food delivery app put an end to Amazon’s partnership with Chicago-based Grubhub, which began in 2022. Amazon Prime members previously received Grubhub perks, including unlimited $0 delivery fees on orders that met a $12 minimum.
Grubhub has suffered severe blows since the deal’s inception, losing a massive amount of market share to competitors Uber Eats and DoorDash.
Grubhub did not immediately respond to a request for comment.
Uber Eats has expanded aggressively into grocery and retail — partnering with major national brands including Costco and Kroger.
Amazon’s partnership with Uber Eats marks its third try at restaurant delivery in the U.S. Amazon shuttered its own restaurant delivery service called Amazon Restaurants in 2019 after four years because, like Grubhub, it struggled to keep up with competitors.
Amazon has, however, pushed ahead into another competitive market: ultrafast delivery.
In December, Amazon launched Amazon Now, a 30-minute delivery service with a heavy emphasis on groceries and other household essentials. The service is now available in Atlanta, Dallas-Fort Worth, Philadelphia and Seattle and directly competes with market giants Instacart and Gopuff.
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