Amazon has agreed to take a 2 per cent stake in Grubhub, the US business of Just Eat Takeaway, as part of a wider deal with the online food delivery group.
The deal would also give Amazon Prime users in the US a one-year membership to Just Eat’s Grubhub food delivery service, the Amsterdam-based company said on Wednesday.
Just Eat is one of the world’s largest operators of food delivery apps, but it has lost more than half its market value this year as it grapples with a slowdown in growth and criticism from investors over last year’s $7.3bn purchase of Grubhub.
Just Eat said the Amazon deal would “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”.
Under the deal, the US tech company’s stake in Grubhub could rise to 15 per cent.
Just Eat’s shares rose 18 per cent to €16.24 in early trading on Wednesday.
In a statement, Adam DeWitt, Grubhub’s chief executive, said the deal would “help Grubhub continue to deliver on our longstanding mission to connect more diners with local restaurants”.
“Amazon has redefined convenience with Prime and we’re confident this offering will expose many new diners to the value of Grubhub+ while driving more business to our restaurant partners and drivers,” he added.
