Amazon announced on Thursday that Uber Eats will become the exclusive restaurant delivery partner for Prime members in the United States, ending the company's existing arrangement with Grubhub.
What the New Partnership Means for Prime Members
Prime subscribers will be able to place food orders through Uber Eats directly from Amazon.com or the Amazon Shopping app. The integration does not require users to create a separate Uber account, and delivery is free on orders that total more than $25. To encourage early adoption, Amazon and Uber are offering a $20 discount on the first order of $25 or more during the first two weeks of the program.
Why Amazon Dropped Grubhub
An Amazon spokesperson said the company regularly reviews third-party offers and identified an opportunity to improve the restaurant delivery experience for Prime members. The statement did not disclose specific performance metrics, but the shift aligns with Amazon's broader strategy of consolidating services under partners that can deliver a seamless experience across its ecosystem.
History of Amazon's Relationship with Grubhub
Amazon first partnered with Grubhub in 2022, providing Prime members with a free Grubhub+ subscription. In 2023 the agreement was expanded, making the free Grubhub+ membership a permanent benefit for Prime users. At the same time, Amazon negotiated a performance-based deal with Grubhub's then-owner, Just Eat Takeaway.com, that allowed Amazon to increase its equity stake in Grubhub up to 18% and receive warrants for additional shares each year.
Just months after that agreement, Just Eat Takeaway announced plans to sell Grubhub to Wonder. According to the annual report of Just Eat Takeaway, Amazon chose in December 2024 to cash out on its outstanding exercisable warrants, effectively ending its equity participation in Grubhub.
Despite the equity exit, the commercial partnership between Amazon and Grubhub continued until the new Uber Eats deal took effect on Thursday.
How the Uber Eats Integration Works
When a Prime member selects a restaurant on Amazon's platform, the order is routed to Uber Eats' fulfillment network. The user sees the Uber Eats brand only in the background; the Amazon interface remains the primary point of interaction. Because no separate Uber account is required, the user's Amazon credentials handle authentication, payment, and delivery tracking.
Free delivery applies only to orders that exceed $25. For orders below that threshold, standard Uber Eats delivery fees apply, which vary by market and restaurant. The $20 promotional credit is limited to one use per Prime member and must be applied within the first two weeks after the launch.
Broader Context: Amazon's Multi-Platform Partnerships
The Uber Eats deal adds to a suite of collaborations between Amazon and Uber that already cover cloud computing (Amazon Web Services supporting Uber's infrastructure), autonomous vehicle services through Uber's Zoox subsidiary, and voice-activated ordering via the Alexa+ assistant. These cross-industry ties illustrate Amazon's approach of leveraging existing platforms rather than building parallel services from scratch.
Impact on Consumers and the Food-Delivery Market
For Prime members, the change offers a single-click ordering experience and the potential for cost savings on larger meals. For restaurants, the shift may redirect a portion of their delivery traffic from Grubhub to Uber Eats, affecting commission structures and order volumes. Grubhub, which could not be reached for comment, may need to reassess its strategy for retaining Prime customers who previously received free Grubhub+ access.
What Comes Next
Amazon has not announced a specific timeline for evaluating the Uber Eats partnership, but the company's practice of periodic review suggests further refinements could follow. Uber Eats will likely monitor order volume, delivery times, and customer satisfaction metrics to gauge the success of the integration. Prime members should watch for any updates to the free-delivery threshold or promotional offers as the partnership matures.
Industry observers will also track how Grubhub responds, whether through new incentives for non-Prime users or by pursuing alternative alliances. The food-delivery sector remains highly competitive, with major players such as DoorDash, Postmates, and regional services vying for market share.
Practical Takeaways for Prime Members
- Use Amazon.com or the Amazon Shopping app to place food orders without logging into Uber.
- Orders over $25 qualify for free delivery; smaller orders incur standard Uber Eats fees.
- Apply the $20 discount within the first two weeks to receive a reduced price on the first qualifying order.
- Monitor the Amazon app for any changes to delivery fees or promotional periods.
Overall, the Amazon-Uber Eats partnership represents a strategic shift designed to keep Prime's value proposition competitive while simplifying the food-ordering process for millions of U.S. consumers.
