Amazon has appointed Uber Eats as its new delivery partner for Prime members in the U.S., marking the termination of its previous agreement with Grubhub.
Announced on Thursday, the collaboration allows Prime members to place food orders directly from Uber Eats via Amazon.com and the Amazon Shopping app. Notably, there is no requirement to create an Uber account, and orders exceeding $25 will incur no delivery fee, according to the companies.
The partnership replaces the previous arrangement with Grubhub that provided Prime members with access to Grubhub+. An Amazon spokesperson mentioned that the company regularly reassesses its third-party offerings and identified this new opportunity to enhance the delivery experience for its users.
This new agreement further solidifies the already significant collaboration between Amazon and Uber, which includes ventures in cloud computing, autonomous robotaxis through Zoox, and integrating Uber Eats with Amazon’s AI-driven Alexa assistant.
Additionally, the partnership offers Prime members added benefits as a way to justify the annual subscription cost. To promote this new service, Amazon and Uber are giving Prime members a discount of $20 off their first order of $25 or more within the first two weeks of the launch.
The shift away from Grubhub signifies the end of a previously close partnership. Amazon initially partnered with Grubhub in 2022, providing Prime members with a complimentary Grubhub+ subscription.
In a subsequent two-year extension, Amazon broadened its agreement, maintaining the free Grubhub+ membership for Prime customers. Furthermore, Amazon negotiated with Just Eat Takeaway.com, Grubhub’s former owner, to enhance its stake in the food delivery service to as much as 18%.
The performance-related agreement, set for annual renewal, allowed Amazon to accrue warrants for additional shares in Grubhub. However, following an announcement from Just Eat Takeaway about plans to sell Grubhub to Wonder, Amazon decided in December 2024 to cash in its outstanding exercisable warrants.
Despite this, the partnership between Amazon and Grubhub persisted until now.
Grubhub did not respond prior to publication for comment. Further updates will follow if the company provides a response.
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