Amazon ditches GrubHub for Uber Eats, effective immediately

Amazon is discontinuing its partnership with GrubHub and switching to Uber Eats for its food delivery service, effective immediately. This change brings additional benefits for Amazon Prime members. Prime subscribers will no longer need an Uber Eats account to use the service, as the entire process will occur on Amazon's website.

Furthermore, Prime members will not be charged delivery fees for orders over $25. Additionally, Prime members can get $20 off their first two Uber Eats orders of $25 or more over the next two weeks. Although the order receipt will come from Uber Eats, Amazon will manage the entire process for Prime users, including order placement and delivery alerts.

Amazon previously operated its own food delivery service, Amazon Restaurants, but shut it down in 2019 to partner with other companies. In 2022, Amazon signed a deal with GrubHub that provided Prime users with a free GrubHub+ subscription. However, Amazon and Grubhub extended their partnership in 2024, making Grubhub+ an ongoing benefit for Prime members.

Amazon's decision to partner with Uber Eats aligns with its strategy of offering attractive perks to Prime subscribers to keep them subscribed. According to a report, Uber Eats holds between 23 and 26 percent of the U.S. food delivery market, compared to GrubHub's 6 to 8 percent. Therefore, this new partnership with Uber Eats is expected to be more appealing to a larger portion of Amazon's customer base.