IF YOU are an Amazon Prime member, then some new perks are headed your way – here’s what you need to know.
On Wednesday, Amazon struck a deal with Grubhub that will give Prime members in the United States free membership to the food delivery service for a year.
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What’s more, US Prime subscribers will also be able to get free delivery on certain orders, according to a statement by Just Eat Takeaway.com, the Dutch company that owns Grubhub.
“In addition to $0 delivery on eligible orders, Grubhub+ members get access to member-only perks and rewards,” the company added.
What’s in the deal?
The deal outlines that Amazon can acquire a 2 percent stake in Grubhub – an amount that could eventually grow to 15 percent, the New York Times reported.
Amazon’s stake will come in the form of warrants, which will vest depending on certain performance conditions, Just Eat said.
Predominantly, the agreement will stand as long as the number of new consumers delivered is satisfactory to Amazon.
Just Eat noted that the deal will automatically renew each year unless terminated by Amazon or Grubhub.
“I am incredibly excited to announce this collaboration with Amazon that will help Grubhub continue to deliver on our long-standing mission to connect more diners with local restaurants
,” Adam DeWitt, CEO of Grubhub, said.
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“Amazon has redefined convenience with Prime and we’re confident this offering will expose many new diners to the value of Grubhub+ while driving more business to our restaurant partners and drivers.
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Record lows
Just Eat has seen its share price drop by more than 65 percent this year, hitting a record low on Tuesday, Bloomberg reported.
Earlier this year, the company also launched an investigation into its chief operating officer’s alleged misconduct.
Meanwhile, the company’s former Chairman, Adriaan Nuhn, stepped down in May.
Since the deal with Amazon, things are looking up for Just Eats as its shares jumped 20 percent Wednesday morning.
Just Eat purchased Grubhub roughly two years ago in a $7.3 billion deal.
