has teamed up with Just Eat Takeway in a deal that gives its U.S. Prime users a one-year membership to food delivery service Grubhub.
Under the terms of the deal, Amazon (ticker: AMZN) will have an initial option to take a 2% stake in Grubhub, Netherlands-based Just Eat said in a statement on Wednesday. Amazon will be able to increase its total stake to 15% of Grubhub, conditional on performance terms focused on adding new customers, Just Eat said.
Shares in Just Eat (TKWY.Amsterdam), which have fallen by more than 67% so far this year, rose 13.86% to €15.64 ($16.03) in Amsterdam on Wednesday.
The deal, which comes ahead of Amazon’s annual Prime Day shopping event on July 12, will allow U.S. Prime members to have their delivery fees waived from select restaurants where Grubhub operates.
“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 said.
Just Eat said it will continue to explore a full or partial sale of Grubhub which it bought last year for $7.3 billion in stock.
Write to Lina Saigol at [email protected]