Same-day TP delivery… with a side of mozz sticks. Amazon’s taking a bigger bite out of the food-delivery biz after announcing a 2% stake in Grubhub yesterday. Refresher: Grubhub was scooped up by European delivery giant Just Eat in 2020, but Just Eat is trying to sell the US-based biz as the delivery race heats up. Now:
- Prime rib: Amazon’s 200M+ Prime members can access a free year of Grubhub+ (valued at $10/month), including free delivery and members-only discounts.
- Zero loyalty: Shares of DoorDash sank 7% and Uber dropped 5% on fears that Prime members could ditch those food-delivery services for Grubhub.
- Perk’d up: UK delivery staple Deliveroo said memberships quadrupled in February after Amazon rolled out a similar Prime perk last year.
Strolling to the bookstore... Amazon’s sales have slumped as shoppers cut back on online spending. Last quarter, the Zon posted its slowest quarterly growth in decades. Grubhub delivery perks could help justify its recent 17% Prime price hike while boosting subs. It’s easier to lean on partnerships than create perks from scratch: in 2019 the Zon ditched its Amazon Restaurants delivery biz as hot competition bit into profits.
The "subscription-squared" model is here... First we had credit-card companies offering Lyft Pink and DashPass subs as perks. Now we have paid subscriptions like Prime offering other paid subs as perks. Think: Hulu offering subscribers free Uber Eats Passes for six months. These partnerships let consumers enjoy several perks at a lower price — and help subscription partners keep customers loyal longer.