Amazon has made Uber Eats its official restaurant delivery partner for Prime members in the United States, effectively ending its deal with Grubhub and deepening an already broad relationship with Uber that spans cloud computing, robotaxis and voice-assistant integration.
Under the partnership announced Thursday, Prime members will be able to order food from Uber Eats directly through Amazon.com or the Amazon Shopping app without needing to create an Uber account, and will not pay a delivery fee on orders of more than $25.
To kickstart the change, Amazon and Uber are offering Prime members $20 off their first two orders of $25 or more during the first two weeks.
The commercial agreement with Grubhub that gave Prime members access to Grubhub+ ended Thursday, an Amazon spokesperson said, adding that the company continuously evaluates its third-party offers. Amazon said it had identified an opportunity to deliver an even better restaurant delivery experience. A Grubhub spokesperson also confirmed the agreement was ending.
Prime members can no longer place orders through Amazon.com or the shopping app, though those who activated Grubhub+ will still be able to use that membership through December 31, 2027.
The move ends a once-close relationship. Amazon first struck a deal with Grubhub in 2022, offering Prime members a free Grubhub+ subscription. Two years later, it expanded the commercial agreement and made the free membership an ongoing offer. Amazon also reached a deal with Grubhub's then-owner, Just Eat Takeaway.com, to increase its equity stake in the food delivery company up to 18%. Under that performance-based agreement, Amazon could receive warrants representing an additional stake in Grubhub. But months later, Just Eat Takeaway announced plans to sell Grubhub to Wonder. According to Just Eat Takeaway's annual report, Amazon elected in December 2024 to cash out on its outstanding exercisable warrants, though the commercial partnership continued until now.
Analysis
Why This Matters
- Amazon Prime members lose free Grubhub+ access but gain fee-free Uber Eats orders over $25, potentially a better deal depending on their ordering habits.
- The shift deepens the strategic alliance between Amazon and Uber across cloud computing, autonomous vehicles and delivery, giving both companies more leverage in the competitive food delivery market.
- Grubhub, already under pressure from its pending sale to Wonder, loses a major distribution channel that drove Prime subscriber sign-ups.
Background
Amazon first integrated restaurant delivery into Prime in 2022 with Grubhub, offering a free Grubhub+ subscription (normally $10/month). In 2024 it expanded the deal and took warrants in Grubhub, but cashed them out later that year after Just Eat Takeaway announced plans to sell Grubhub to Wonder, a food-tech company. Uber Eats is the largest US delivery platform by market share.
Key Perspectives
Amazon spokesperson: said the company continuously evaluates its third-party offers and identified an opportunity to deliver an even better restaurant delivery experience.
Grubhub spokesperson: confirmed the agreement was ending.
What to Watch
- Whether the US Federal Trade Commission or state regulators scrutinise the Amazon-Uber tie-up given both companies' market power.
- How Wonder proceeds with its Grubhub acquisition and whether it can secure other distribution partners.
- Whether Amazon expands the Uber Eats integration to other countries where Prime operates.
Checked
12 claims in this story checked against 2 sources: 11 supported.
Show each claim
- SupportedAmazon replaced Grubhub with Uber Eats as Prime members’ official restaurant delivery partner.TechCrunch: “Amazon has made Uber Eats as its official restaurant delivery partner for Prime members in the United States, effectively ending the e-commerce giant’s existing deal with Grubhub.”
- Partly supportedPrime members get fee-free Uber Eats orders over $25, ending a deal with Grubhub that began in 2022.GeekWire: “Service fees still apply, the company confirmed.”
- SupportedAmazon and Uber announced the partnership on Thursday.TechCrunch: “Under the new partnership announced Thursday, Amazon Prime members will be able to order food from Uber Eats directly through Amazon.com and the Amazon Shopping app.”
- SupportedPrime members can order through Amazon.com or the Amazon Shopping app without creating an Uber account.TechCrunch: “Amazon Prime members will be able to order food from Uber Eats directly through Amazon.com and the Amazon Shopping app. Importantly, Prime members won’t need to create an Uber account”
- SupportedPrime members will not pay a delivery fee on orders of more than $25.TechCrunch: “Prime members won’t need to create an Uber account and won’t pay a delivery fee on orders of more than $25, the companies said.”
- SupportedAmazon and Uber are offering $20 off members’ first two orders of $25 or more during the first two weeks.TechCrunch: “Amazon and Uber are offering Prime members $20 off their first two orders of $25 or more during the first two weeks.”
- SupportedAn Amazon spokesperson said the Grubhub agreement ended Thursday.TechCrunch: “The commercial agreement with Grubhub that gave Prime members access to Grubhub+ ends Thursday, according to an Amazon spokesperson”
- SupportedAmazon said it identified an opportunity to deliver an even better restaurant delivery experience.TechCrunch: “Amazon said that through that process it identified an opportunity to deliver an even better restaurant delivery experience.”
- SupportedA Grubhub spokesperson confirmed the agreement was ending.TechCrunch: “A Grubhub spokesperson also confirmed the agreement was ending.”
- SupportedPrime members can no longer place orders through Amazon.com or the shopping app.TechCrunch: “Prime members can no longer place orders through Amazon.com or the shopping app”
- SupportedMembers who activated Grubhub+ can keep using that membership through December 31, 2027.TechCrunch: “if Prime members activated Grubhub+, they will still be able to use that membership through December 31, 2027.”
- SupportedAmazon elected in December 2024 to cash out its outstanding exercisable warrants.TechCrunch: “According to Just Eat Takeway’s annual report, Amazon elected in December 2024 to cash out on its outstanding exercisable warrants.”
