Amazon could earn a 2% to 15% stake in food delivery firm Grubhub as part of a deal with parent company Just Eat Takeaway.com that offers Amazon Prime customers a free membership to the service and no-fee delivery from select restaurants.
Just Eat Takeaway will bump up Amazon’s ownership stake depending on performance terms focused on adding new Grubhub users, Just Eat Takeaway told the Wall Street Journal on Wednesday (July 6).
“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,” Adam DeWitt, CEO of Grubhub said in a press release.
See also: Just Eat Takeaway Holds Onto Grubhub as Aggregators Lose to Direct Ordering
Founded in 2004 and headquartered in Chicago, Illinois, Grubhub was acquired by Netherlands-based Just Eat Takeaway for $7.3 billion last June to create the largest food delivery firm outside China.
Just Eat was shopping around for a buyer for Grubhub but in the meantime is focusing on ways to grow, PYMNTS reported last week.
The company is still seeking a buyer for a full or partial sale of Grubhub.
“The company, together with its advisors, continues to actively explore the partial or full sale of Grubhub,” says the release.
Read more: Citing Inflation, Just Eat Takeaway Hikes Commissions
“The agreement is expected to 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,” per the release.
Grubhub closed out 2021 with gross assets totaling €6,521 million and the loss before tax for the 12 months ending Dec. 31, 2021, was €403 million.
Related: Apollo Global Shows Interest in Just Eat Takeaway’s Grubhub
Private equity firm Apollo Global expressed interest in Grubhub, PYMNTS reported last month. While Just Eat Takeaway paid $7.3 billion for Grubhub, suitors have been dangling offers in the $1 billion range.
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