Amazon and Grubhub are in the second year of a five-year partnership providing Prime members with free access to Grubhub's subscription services. By integrating Grubhub's ordering tab into the Amazon app, the companies aim to enhance user engagement, particularly among Prime members. This move is part of Amazon's strategy to strengthen its $139-a-year Prime membership against competitors like Walmart and Target. Analysts recognize the partnership as instrumental in highlighting the value of Prime, while also noting the competitive landscape alongside services like Uber Eats and DoorDash.
"Amazon Prime customers are a very engaged customer cohort," says Jamil Ghani, Amazon's worldwide vice president of Prime. More than nine out of 10 orders on Amazon.com or in the app are coming from Prime members returning to the order experience, the company says.
“The main benefit to Amazon of the Grubhub partnership is that it helps underscore the value of Prime outside all the benefits Amazon offers via its own services,” GlobalData managing director Neil Saunders tells Fast Company.
This collaboration arrives at a time when many companies are enhancing their subscription offerings, with Amazon competing to increase the appeal of its $139-a-year Prime membership.
Grubhub operates in the same competitive space as Uber Eats and DoorDash, both of which also have loyalty programs bolstered by third-party deals.
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