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Amazon has partnered with Grubhub to offer meal delivery benefits to prime customers

(CNN Business)Amazon Prime members in the US offer free meal delivery through Grubhub as part of a growing business partnership. Now available. Between the two companies.

With this transaction announced on Wednesday,Amazon (AMZN)paid subscribers An option forto sign up forto get a one-year free Grubhub + membership (usually $ 9.99 per month) and receive unlimited free delivery when ordering from the restaurants listed in the service.
At the same time, Amazon could be a stakeholder in Grubhub's business. Amazon has the option to acquire a 2% stake inGrubhub (GRUB), based in the Netherlands at Grubhub. According to an announcement from its parent company,, certain performance requirements have been met.
For Amazon, this partnership could increase the appeal of the Prime service, which currently costs $ 139 a year. It can also help strengthen your food delivery efforts. Amazon announced in 2019 that it will close its short-term restaurant delivery service in the United States, which delivers food to prime members.

"Amazon has tried to build its own third-party food market for years, but with little success," William Blair analyst Ralph Shackart said Wednesday. I wrote in my research note. "Today's announcement looks like a potential partnership approach to return to space and establish ourselves."

Shackart also said that Amazon "acquired Grubhub's business." I'm considering doing it. "

In a statement Wednesday, Just Eat "continues to actively investigate partial or complete sales of Grubhub." The stock price of, which trades in Amsterdam, surged about 13% on Wednesday.

Amazon's latest entry into the food delivery sectoroccurs when the industry faces new headwinds and a tougher funding environment. As the pandemic-relatedbusiness restrictions were relaxed and many consumers resumed eating out, demand for food delivery services plummeted. Labor shortages and evolving regulatory conditions have also hit thesector in recent months.

Amazon's move could further disrupt the sector. DoorDash's share price fell about 8% in Wednesday morning news, plunging about 50% from the beginning of the year. Uber's share price, the operator of Uber Eats, also fell by about 50% in 2022, dropping more than 4% on Wednesday morning.

According todatareleased last month, DoorDash still dominates the delivery of meals in the United States , with 59% of the market being 24% of Uber Eats. And compared to 13% of Grubhubs. According to Bloomberg's second measure.