Home Community Insights Amazon Replaces Grubhub With Uber Eats as Prime Members’ Restaurant Delivery Partner

Amazon Replaces Grubhub With Uber Eats as Prime Members’ Restaurant Delivery Partner

Amazon Replaces Grubhub With Uber Eats as Prime Members’ Restaurant Delivery Partner

Amazon has selected Uber Eats as its official restaurant delivery partner for Prime members in the United States, ending a commercial arrangement with Grubhub and expanding a relationship that already covers several technology and mobility services.

Under the partnership announced on Thursday, Amazon Prime members will be able to order meals from Uber Eats directly through Amazon.com and the Amazon Shopping app. Customers will not need to create separate Uber accounts and will pay no delivery fees on orders above $25, the companies said.

The agreement gives Uber Eats access to Amazon’s large Prime membership base while allowing Amazon to expand the range of services included in its subscription programme. For Uber, the integration offers another route to reach customers beyond its own app and could increase restaurant orders through Amazon’s digital platforms.

Amazon confirmed that its commercial agreement with Grubhub, which gave Prime members access to Grubhub+, ends on Thursday. A company spokesperson said Amazon regularly reviews its third-party offers and identified an opportunity to provide customers with an improved restaurant delivery experience.

The transition marks a significant change in Amazon’s approach to food delivery, where it has used partnerships rather than building and operating a comparable nationwide restaurant delivery network of its own.

The new arrangement builds on an expanding commercial relationship between the two companies. Their existing agreements cover cloud computing, Zoox robotaxis, and the integration of Uber Eats into Alexa+, Amazon’s artificial intelligence-powered assistant.

Bringing Uber Eats directly into Amazon’s shopping ecosystem could make restaurant delivery more accessible to Prime members who already use the platform for retail purchases and other services. It also gives Uber an opportunity to benefit from Amazon’s customer traffic without requiring users to move between separate applications.

The companies are offering an introductory incentive to encourage adoption. During the first two weeks of the partnership, Prime members will receive $20 off their first Uber Eats order of at least $25.

For Amazon, the arrangement adds another benefit to a subscription programme that has become central to its customer retention strategy. Prime combines shopping-related services with entertainment and other membership benefits, making the value of the annual fee dependent partly on how frequently customers use the additional offerings.

Restaurant delivery provides a recurring service that could strengthen that proposition, particularly for members who regularly order meals online. The $25 minimum for free delivery also establishes a spending threshold for the benefit, while the introductory discount is designed to encourage initial orders.

The partnership creates for Uber a distribution channel that could generate additional transactions and expose its restaurant delivery service to customers who might otherwise use competing platforms.

The switch ends a relationship that began in 2022, when Amazon first offered Prime members a free Grubhub+ subscription.

The arrangement expanded in 2024, when Amazon made the free Grubhub+ membership an ongoing benefit for Prime customers. The companies also developed a broader commercial relationship involving Grubhub’s ownership structure.

At the time, Amazon reached an agreement with Grubhub’s then-owner, Just Eat Takeaway.com, allowing the e-commerce company to increase its equity stake in the food delivery business to as much as 18%.

The performance-based arrangement included warrants that could give Amazon an additional ownership interest in Grubhub, subject to specified conditions and annual renewals.

However, the ownership relationship changed soon afterwards. Just Eat Takeaway announced plans to sell Grubhub to Wonder, ending the prospect of a longer-term partnership built around the original ownership arrangement. According to Just Eat Takeaway’s annual report, Amazon elected in December 2024 to cash out its outstanding exercisable warrants.

The commercial agreement between Amazon and Grubhub nevertheless continued, allowing Prime members to retain access to Grubhub+ until the latest transition.

The move to Uber Eats therefore separates Amazon’s restaurant delivery benefit from the ownership-related arrangements that accompanied its earlier partnership with Grubhub.

It also underscores how Amazon can use its subscription platform to negotiate access to services operated by established third-party providers. Rather than maintaining an ownership position in a delivery company, Amazon can offer Prime members access to an external network while concentrating on customer engagement through its own platforms.

However, the new partnership gives Uber a stronger position within Amazon’s consumer ecosystem, while Grubhub loses a distribution relationship that had helped it reach Prime members.

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