Will Amazon's Grubhub Deal Kill Uber and Doordash's Food-Delivery Dreams?
On July 6, huge news reverberated across the food-delivery industry when Amazon (NASDAQ: AMZN) announced a partnership with Grubhub, a subsidiary of Just Eat Takeaway (OTC: JTKWY). As a part of the deal, Amazon Prime members have the ability to get Grubhub+ -- the company's premium subscription service -- for free in the United States. Given the huge prominence of Amazon Prime, Grubhub competitors Uber and Doordash saw their stocks sell off sharply the day of the announcement.
Let's check out what this partnership means for Grubhub and the entire food-delivery market.
The main announcement from Grubhub was that existing Amazon Prime members can try Grubhub+ for free for an entire year. Grubhub+ typically costs $9.99 a month, so this is a huge bargain for food-delivery users. With over 150 million estimated Prime accounts in the United States, Grubhub can target virtually the entire country with this offer. (Remember, a lot of Prime accounts have multiple users.)
Source Fool.com
