Reaction from Hell’s Kitchen eatery owners to the news was mixed. Despite an initially strong run, Grubhub has suffered at the hands of both expanded offerings from rival delivery services DoorDash and UberEats as well as local government caps limiting the commissions they can charge partner restaurants (meant to protect small businesses recovering from the pandemic) have stunted the platforms’s growth to third place in the delivery wars. Following the announcement, the Dutch company’s shares jumped 20 percent on Wednesday, in their steepest climb in nearly four years.
Looking to lure customers back after many diners returned to dining in-person, the partnership could be a life raft for the struggling Just Eat, whose stock shares dipped 67 percent last year before announcing their intent to potentially sell Grubhub off. Grubhub has been suffering against competition from DoorDash and UberEats. Amazon has redefined convenience with Prime and we’re confident this offering will expose many new diners to the value of Grubhub+ while driving more business to our restaurant partners and drivers,” said Adam DeWitt, CEO of Grubhub in a press release. “I am incredibly excited to announce this collaboration with Amazon that will help Grubhub continue to deliver on our long-standing mission to connect more diners with local restaurants. According to Crain’s New York, Amazon’s stake will depend on how well the partnership works and how many customers the ubiquitous retailer attracts. Additionally, Amazon Prime’s 200 million members will be offered a free year-long premium membership on the platform.
The partnership between the internet behemoth and Just Eat Takeaway - the Dutch parent company which acquired Grubhub in 2020 for $7.3 billion - was announced Wednesday, and will allow Amazon a two percent stake in Grubhub, with the option to increase its holdings to as much as 15 percent. Already merged Seamless and Grubhub delivery platforms have now joined forces with Amazon in what is becoming a towering home delivery monolith, putting profits from that impulsive late-night pizza order into Jeff Bezos’s pocket.Īmazon have taken a stake in Grubhub and Seamless in the home delivery market.
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