The move, under which Grubhub’s food delivery service will be added to Amazon’s website and app, comes nearly two years after the e-commerce acquired a minor stake in the food delivery platform, which is owned by Just Eat Takeaway.com.
All Prime members in the United States can use Grubhub’s service to order food from hundreds of thousands of restaurants in all 50 states with Grubhub via Amazon.com and in the Amazon Shopping app, Amazon said in a statement.
Amazon previously granted Prime members a yearlong subscription to the food delivery service, which includes free delivery on orders over $12, lower service fees, 5 percent credit back on pick-up orders, and exclusive offers, according to Amazon.
However, the retailer said on May 30 that it is now making the food-delivery service a permanent fixture of its Prime membership program, which costs $14.99 per month or $139 per year.
According to Amazon, since the company first rolled out the Grubhub+ offer in 2022, Prime members have saved “hundreds of millions of dollars” from waived subscription fees and discounts.
Prime Memberships on the Rise
Amazon had 180 million Prime subscribers in the United States as of March 2024, an increase of roughly 8 percent from the March 2023 quarter, according to estimates from Chicago-based research firm Consumer Intelligence Research Partners.Amazon Sued Over Prime Memberships
The May 30 announcement also comes after a federal judge on May 28 declined to dismiss a lawsuit filed by the Federal Trade Commission (FTC) accusing Amazon of tricking users into signing up for Prime memberships and forcing them to go through a complex and difficult process to unsubscribe.Amazon has denied the allegations made in the FTC’s lawsuit, branding them “false on the facts and the law.”
“The truth is that customers love Prime, and by design, we make it clear and simple for customers to both sign up for or cancel their Prime membership,” a company spokesperson told The Epoch Times.
“As with all our products and services, we continually listen to customer feedback and look for ways to improve the customer experience, and we look forward to the facts becoming clear as this case plays out.”