Amazon Drops Grubhub and Makes Uber Eats Its Restaurant Delivery Partner for Prime

Under the deal announced on Thursday, Prime members can order food from Uber Eats directly through Amazon.com and the Amazon Shopping app. They will not need to create an Uber account and will pay no delivery fee on orders of more than $25, the companies said. Amazon's commercial agreement with Grubhub, which gave Prime members access to the Grubhub+ subscription, ends the same day, according to an Amazon spokesperson quoted by TechCrunch. The spokesperson said Amazon continuously evaluates its third-party offers and had identified a chance to provide a better restaurant delivery experience.

The switch matters for both companies. For Amazon, it is another benefit to help justify the annual Prime fee, and it keeps restaurant ordering inside Amazon's own storefront rather than sending members to a partner's app. For Uber, it opens a large new channel of customers who can order without ever downloading Uber Eats or signing up for its own Uber One membership. To start the programme, the two companies are offering Prime members $20 off their first order of $25 or more during the first two weeks, TechCrunch reported.

The agreement adds to an already wide set of ties between the two companies. Amazon and Uber have existing arrangements covering cloud computing, Zoox robotaxis and the integration of Uber Eats into Alexa+, Amazon's AI-powered voice assistant. Ordering meals through an assistant or a shopping app, rather than a dedicated delivery app, is one of the ways large platforms are trying to keep customers inside their own services as AI agents begin to handle more everyday purchases.

The move ends what had been a close relationship with Grubhub. Amazon first struck its deal with the delivery company in 2022, giving Prime members a free Grubhub+ subscription. Two years later it expanded the commercial agreement and made the free membership an ongoing Prime perk. At the same time, Amazon reached an agreement with Grubhub's then-owner, Just Eat Takeaway.com, under which it could raise its equity stake in Grubhub to as much as 18% through performance-based warrants, with the arrangement renewing annually.

That equity link did not last. Months after the expanded deal, Just Eat Takeaway announced it would sell Grubhub to Wonder, and according to Just Eat Takeaway's annual report, Amazon chose in December 2024 to cash out its outstanding exercisable warrants. The commercial partnership continued until this week.

Amazon has tried restaurant delivery before. It ran its own service, Amazon Restaurants, for several years before closing it in the US in 2019, and has since relied on partners rather than its own couriers for prepared food.

Grubhub could not be reached for comment before publication, TechCrunch said. Neither Amazon nor Uber disclosed the financial terms of the new agreement or how revenue from Prime orders will be shared.