Amazon Tucks Uber Eats Into Its App, Swapping Out Grubhub for Prime
Amazon is dropping Grubhub and plugging Uber Eats directly into its own app, letting U.S. Prime members order restaurant food without a separate Uber account and dodge delivery fees on $25-plus orders. It's a comeback of sorts for Amazon, which killed its own restaurant delivery service back in 2019.
Amazon is handing restaurant delivery to Uber Eats — and keeping it all inside its own walls. U.S. Prime members can now order from Uber Eats without ever making a separate Uber account, using their existing Amazon login and payment methods on Amazon.com or in the Amazon Shopping app. Orders of $25 or more skip the delivery fee entirely. Service fees, Amazon confirmed, still apply.
The move boots Grubhub out of the Prime perk slot. Amazon had made Grubhub an ongoing Prime benefit in 2024 after a one-year trial, and told GeekWire it ended that agreement after spotting what it called an opportunity to deliver an even better restaurant delivery experience. Uber Eats now covers hundreds of thousands of restaurants across nearly 10,000 U.S. cities and towns, spanning big metros and rural communities alike.
Amazon is pitching the math hard: it says members could save more than $175 a year through the delivery fee waiver and Prime-only promotions, which clears the $139 annual cost of Prime. New users get $20 off their first two orders of $25 or more within 14 days, and Prime Visa cardholders earn 5% back on Uber Eats orders through Dec. 5. Members who already pay for Uber One keep those benefits — but Amazon says the two memberships run independently, and the Prime perk only applies to Uber Eats orders placed through Amazon.
“We're excited to connect our restaurant community with new Prime fans, while giving Prime members a seamless way to enjoy great food from restaurants through Uber Eats,” Uber president and COO Andrew Macdonald said in a statement.
The deal is Amazon's second swing at a business it once walked away from. Amazon shut down its own Amazon Restaurants service in 2019, four years after launching it in Seattle and expanding past 20 U.S. cities. It cut jobs on the team in early 2018, closed the London operation later that year and killed Daily Dish, its workplace lunch delivery play. Uber, for its part, had named Amazon as an Uber Eats competitor in its IPO filing that same year.
Restaurant delivery is just one front in Amazon's broader scramble to make Prime feel worth it. In February it made the Alexa+ AI assistant free for U.S. Prime members, and last year it ended a program that let members share free shipping with someone outside their household. Prime members can also pass the Uber Eats benefit to one adult in their home through Amazon Family.
TopicsAmazon · Uber · Uber Eats · Grubhub · Prime · Andrew Macdonald · Amazon Restaurants · Alexa+
Source: geekwire.com
Written by Paparazzi with AI. Not financial advice.
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