Amazon-Grubhub Partnership Latest in String of Collabs
In another example of the blurring of lines between retail and foodservice, Amazon and Grubhub are teaming up to bring restaurant fare to consumers at home. On the heels of a high profile partnership between Instacart and Uber Eats and recent arrangements between DoorDash and retailers such as Wakefern, Giant Eagle and Rouses Markets, the Amazon-Grubhub agreement allows Amazon customers to order from hundreds of thousands of restaurants in all 50 states with Grubhub directly on Amazon.com and the Amazon Shopping app.
In addition to making the process of ordering food from local eateries easier, the partnership provides deals to Prime members. According to Amazon, Prime members can utilize Grubhub+ perks without automatically renewing into a paid Grubhub+ membership, with $0 delivery fees on eligible orders and 5% credit back on pickup orders.
Amazon leaders said that the partnership reflects the businesses’ attempt to offer convenient solutions for consumers balancing meals prepared at home and away from home. “Whether it's saving money on your favorite takeout with Grubhub+, exclusive deals on Prime Day, prescription savings with RxPass, entertainment with Prime Video, or free shipping on more than 300 million items including tens of millions of products available with Same-Day or One-Day Delivery, Prime keeps getting better for members,” said Jamil Ghani, VP of Amazon Prime.
As many people continue to prepare and eat meals at home, the restaurant delivery sector is shaking out the post-pandemic era that’s been marked by high prices and labor shortages. According to research from Bloomberg Second Measure, DoorDash and its Caviar subsidiary took in 67% of U.S. meal delivery sales as of March 2024, while Uber Eats ranked second with 23% of observed sales that month and Grubhub came in third with 8% of meal delivery spending.
[RELATED: Is an Instacart-Uber Eats Merger on the Horizon?]
Other research underscores the intensifying competition in the restaurant delivery space that is seemingly fueling strategic partnerships. The Vericast 2024 Restaurant TrendWatch Survey revealed that 68% of consumers are shifting from foodservice to grocery sources for budget reasons. This month, LendingTree released the results of a new survey showing that most U.S. consumers even see fast food as a luxury and are eating it less frequently. According to that poll, when asked about their go-to for an easy, inexpensive meal, 56% cited making food at home.
Seattle-based Amazon is No. 2 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America. PG also named the company as one of its Retailers of the Century.
