Amazon has acquired a 2% stake in Grubhub, the North America-based subsidiary of European food delivery giant Just Eat Takeaway, the Amsterdam-based company announced Wednesday.
Shares of Just Eat (OCTUS: JTKWY) were trading up nearly 20% on the news Wednesday morning, while rival DoorDash's stock (NYSE: DASH ) was down about 10%.
Amazon's (NASDAQ: AMZN ) stake in Grubhub could rise to 13% if it can deliver a certain amount of new customers to the business, though the announcement did not specify an exact number.
As part of the deal, Amazon will offer Prime customers a free one-year membership to Grubhub Plus, the platform's premium subscription option. That includes perks like free delivery and members-only rewards in more than 4,000 cities.
"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," said Grubhub CEO Adam DeWitt. "Amazon has redefined convenience with Prime and we're confident this offering will expose many new diners to the value of Grubhub Plus while driving more business to our restaurant partners and drivers."
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Just Eat asserted that the deal will have a neutral impact on Grubhub's earnings and cash flow ...
Full story available on Benzinga.com