Amazon Prime drops Grubhub for Uber Eats with $0 delivery from $25
Amazon Prime members in the US can now order Uber Eats meals on Amazon's platform with no delivery fee for orders over $25. The Grubhub+ benefit, which had a lower $12 threshold, ended the same day. Amazon claims members could save over $175 annually, though details on service fees and data sharing are unclear. The deal is available to all Prime tiers and can be shared with household members.
How this was made
The 30-second read
Why it matters
The move strengthens Amazon's Prime value proposition and expands Uber Eats' addressable market, while Grubhub loses a major distribution partner.
Market read
A significant partnership shift in the U.S. food‑delivery space with potential stock impact for Amazon and Uber.
What to watch
Potential service‑fee and tip structures could reduce net benefit; Grubhub may seek alternative distribution channels.
Background
Amazon has been offering Grubhub+ to Prime members since 2022. The new deal swaps Grubhub for Uber Eats, with $0 delivery on qualifying orders.
Ticker impact
Amazon announced a new partnership with Uber Eats, replacing Grubhub for Prime members and offering $0 delivery on orders $25+.
likely modest upside for AMZN as the partnership enhances Prime offering; pressure on Grubhub (if listed) but not applicable here.
First‑report partnership with a large U.S. retailer; large‑cap relevance and clear commercial benefit for both Amazon and Uber.
Uber Eats will receive orders from Amazon Prime members, expanding its reach to Amazon shoppers nationwide.
likely modest upside as the partnership drives incremental volume for Uber Eats.
First disclosure of the partnership; Uber Eats gains a large new customer base.
Market effects
Food‑delivery sector dynamics shift as Uber Eats gains Amazon traffic while Grubhub loses a key partner.
U.S. consumer‑tech and delivery markets see a redistribution of order flow.
Limited to U.S. market; no immediate global macro effect.
Counterpoint
The partnership may cannibalize Uber's own app usage and add operational complexity, limiting upside.
Key entities
- CompanyAmazon.com, Inc.
US e‑commerce giant launching Uber Eats integration for Prime members.
- CompanyUber Technologies, Inc.
Operator of Uber Eats, gaining Amazon's Prime customer base.
