Amazon gets stake in Just Eat's Grubhub to give Prime members access for one year
Evgenia Parajanian


Ahead of Prime Day on July 12-13, Amazon (NASDAQ:AMZN) announced that Prime members in the U.S. can enjoy a free, one-year Grubhub+ membership with no food-delivery fees on eligible orders, effective today.
In exchange, Amazon (AMZN) will receive warrants representing 2% of Grubhub's shares, and an additional 13% of shares conditional on the deal bringing Grubhub enough customers.

Members can use this facility in more than 4,000 cities with hundreds of thousands of restaurants across the country on orders over $12.
"The agreement is expected to expand membership to Grubhub+, while having a neutral impact on Grubhub's 2022 earnings and cash flow, and be earnings and cash flow accretive for Grubhub from 2023 onwards," Just Eat Takeaway (OTC:JTKWY) said in a statement.
The deal is a vital boost for Just Eat Takeaway, which has seen its share price crash more than 70% this year hitting a record low on Tuesday.
The membership agreement will renew every year unless Amazon or Grubhub terminates it, and Just Eat will continue to explore a full or partial sale of the US business.
Shares down around 33% on YTD basis.
AMZN gets a Strong Buy rating from Wall Street Analysts in contrast to Hold rating from SA quant rating system.