#Amazon prime grubhub plus update
#Amazon prime grubhub plus full
#Amazon prime grubhub plus plus

JET noted that the deal is expected to expand Grubhub+ membership, although it doesn’t disclose current membership numbers and that it will have a “neutral impact” on Grubhub’s 2022 earnings and cash flow, with accretive impact from 2023 onwards.

#Amazon prime grubhub plus full

It confirmed today that this remains the case: “The Company, together with its advisors, continues to actively explore the partial or full sale of Grubhub,” it said in a statement. It hotly contested buying the operation back in 2020 for $7.3 billion, but by May of this year it was weighing options for the business. Revenues on paper looked like they grew 3% but in constant currency also declined by 5%.Īt the same time, the company has been reassessing its ownership of Grubhub.

#Amazon prime grubhub plus update

In a trading update from April (its most recent figures) it noted that Q1 orders in North America were at 89.6 million, a decline of 5% over the same period a year ago (when pandemic buying lifted many delivery boats). business in recent times, where it competes against the likes of Uber Eats and Doordash and many other outfits in what is a highly competitive, and often low margin, space.

#Amazon prime grubhub plus plus

Just Eat Takeaway - a massive food delivery conglomerate that includes both of those international brands, plus Grubhub in the U.S., among other interests - has been under some pressure in its U.S. Doing the math, that works out at the first set of warrants being valued at about $134 million, with the performance-based warrants valued at $870 million. Those actual values will change, but as of December 31, JET said that t he gross assets of Grubhub were €6,521 million ($6.7 billion, down from the $7.3 billion it paid in 2020) and the loss before tax for the 12 months ending in that period was €403 million.

It also notes that “Amazon will also receive warrants (exercisable at a formula-based price) over up to a further 13% of Grubhub’s fully-diluted common equity, the vesting of which is subject to the satisfaction of certain performance conditions, principally the number of new consumers delivered through the commercial agreement.” Specifically, it will include a provision to renew the deal annually (just like a Prime subscription!), and that ” a subsidiary of Amazon will receive warrants (exercisable at a de minimis price) over 2% of Grubhub’s fully-diluted common equity.”

The commercial terms of the agreement looks like it will give Amazon a stake in JET (as Just Eat Takeaway abbreviates its name). It’s normally charged at $9.99 per month. Grubhub+, when it launched in 2020, was described as the “Amazon Prime of food delivery”: like other loyalty programs run by other delivery services, it’s a subscription service where members get free delivery on orders and potentially other bonuses. announced an investment and partnership in which Amazon will offer free membership to Grubhub+ for one year to Prime members in the country, and take equity in Grubhub potentially worth hundreds of millions of dollars. Today, the e-commerce giant and Just Eat Takeaway - which owns Grubhub in the U.S.

Now three years on, it’s taking a different approach to tackling the space to build in one more sweetener to encourage more sign-ups to its Prime subscription service. Amazon tried but then ultimately stepped away from building its own cost-intensive Grubhub and DoorDash competitor in the U.S.