Amazon, Grubhub Partnership Expands Prime Benefits
Bucharest – May 9, 2024 – The Amazon and Grubhub partnership, now in its second year, strategically benefits Amazon Prime members. this collaboration offers complimentary access to Grubhub+, enhancing the value proposition for its subscribers, while bolstering Amazon’s competitive edge. This creates a seamless integration for customers, with company executives reporting customer satisfaction. Read on to discover the key benefits.
Amazon & Grubhub: A prime Partnership Delivers
Amazon and Grubhub are now in the second year of their five-year commercial agreement, a deal that provides Amazon Prime members with complimentary access too Grubhub’s subscription program, Grubhub+.
seamless Integration, Satisfied Customers
The partnership’s success hinges on the seamless integration of Grubhub’s ordering platform directly into the Amazon app and website. This allows users to order food while together engaging in othre activities, such as shopping or streaming content.Company executives report that this integrated experience is yielding positive results.
According to Jamil Ghani, Amazon’s worldwide vice president of Prime, Amazon Prime customers are a very engaged customer cohort.
Amazon plans to further expand its food delivery options through its Alexa+ service later this year.
Subscription Wars: Boosting Prime’s Appeal
This collaboration arrives as numerous companies enhance their subscription offerings. Amazon is actively competing with loyalty programs from Walmart and Target. The company hopes that added benefits, such as Grubhub+, will increase the attractiveness of its $139-a-year Prime membership.
Analyst Insights
Neil Saunders, managing director at GlobalData, emphasizes the strategic importance of the Grubhub partnership for Amazon. The main benefit to Amazon of the Grubhub partnership is that it helps underscore the value of Prime outside all the benefits Amazon offers via its own services.
He adds, Grubhub is a very complimentary service as meal delivery and pickup is not something Amazon does itself.
Grubhub’s Competitive Edge
Grubhub operates in a competitive landscape alongside uber Eats and DoorDash, both of which also have loyalty programs enhanced by third-party agreements with companies like Delta and Chase, respectively. Despite a decline in Grubhub’s market share as 2021, the integration with Amazon has introduced the platform to new users and increased awareness of Grubhub+.
The Value Proposition
A Grubhub+ membership typically costs $120 annually, offering users $0 delivery fees and reduced service fees. The companies assert that Prime members utilizing the service save an average of $300 per year.
Partnership Impact
amazon has reported a more than 50% year-over-year increase in Grubhub+ signups since integrating the platform, though specific signup numbers were not disclosed.
Saunders notes, For Grubhub, the partnership expands the audience and the number or orders it fulfills. Amazon has a huge reach and Grubhub has been able to tap into this.
