Amazon replaces GrubHub with Uber Eats for Prime delivery

Amazon has named Uber Eats as its official restaurant delivery service for Prime members in the United States, marking the end of the e-commerce giant’s long partnership with GrubHub. The shift, announced Thursday, integrates Uber Eats directly into Amazon.com and the Amazon Shopping app, allowing Prime subscribers to place orders without creating a separate Uber account or paying delivery fees on purchases exceeding $25.

The move caps a relationship between Amazon and GrubHub that stretched back to 2022, when the companies first partnered to offer Prime members complimentary access to GrubHub+. That commercial agreement expires Thursday. Amazon said in a statement that it continuously evaluates third-party offerings available to Prime members and identified an opportunity to improve the restaurant delivery experience through this new arrangement.

Integration and Incentives

Prime members gain immediate access to Uber Eats ordering through existing Amazon apps and websites without establishing a new account—a friction point Amazon and Uber appear intent on removing. The waived delivery fee applies to orders totaling more than $25, addressing a common barrier to food delivery adoption.

To accelerate adoption during the partnership’s debut, Amazon and Uber are offering new customers $20 off their first order of $25 or more during the first two weeks following the announcement.

Streamlined Purchasing Experience

The integration eliminates the account creation step that typically accompanies switching to a new delivery service. By routing Uber Eats orders through Amazon’s existing payment and user infrastructure, the companies reduce friction that might otherwise deter Prime members accustomed to one-click checkout.

Fee Structure for Consumers

Waiving delivery charges on orders above $25 aligns with how food delivery services typically generate revenue from volume rather than per-transaction fees. The threshold targets mid-range orders that represent the service’s core use case.

GrubHub Relationship and Warrant Exit

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Amazon’s decision to terminate its GrubHub partnership follows a complex series of financial and strategic shifts involving ownership changes within the food delivery space. In 2022, Amazon secured a deal providing Prime members free access to GrubHub’s paid membership tier. Two years later, the companies expanded this commercial agreement and made the GrubHub+ benefit permanent for Prime subscribers.

Simultaneously, Amazon increased its financial stake in GrubHub’s parent company. Through 2024, Amazon held the ability to boost its equity position in GrubHub to as much as 18% by exercising performance-based warrants, according to terms of its agreement with then-owner Just Eat Takeaway.com. The arrangement carried an annual renewal mechanism.

The Warrant Decision

The structure changed when Just Eat Takeaway announced its intention to sell GrubHub to Wonder, a shift that altered the value proposition for Amazon’s investment position. In December 2024, Amazon elected to cash out its outstanding exercisable warrants rather than maintain them through the ownership transition, according to Just Eat Takeaway’s annual report.

Commercial Partnership Wind-Down

Even after cashing out its warrant position, Amazon and GrubHub maintained their commercial partnership, continuing to offer Prime members Grubhub+ benefits. That arrangement concludes with Thursday’s announcement, as Amazon directs its Prime member incentives entirely toward Uber Eats.

Deepening Amazon-Uber Alliance

The food delivery partnership represents one layer of an increasingly expansive relationship between Amazon and Uber that now spans cloud infrastructure, autonomous vehicles, and voice-activated services. Amazon Web Services provides cloud computing resources for Uber’s operations. Separately, Amazon’s Zoox subsidiary and Uber are exploring joint robotaxi applications.

The companies also integrated Uber Eats into Alexa+, Amazon’s premium tier of its voice assistant that launched with expanded AI capabilities. Customers using Alexa+ can now order restaurant delivery through voice commands, connecting their existing smart home devices to food ordering functionality.

Strategic Alignment

Each partnership layer reinforces the others. Food delivery generates usage of Amazon’s shopping apps and ecosystem; cloud services reduce Uber’s infrastructure costs; and voice integration keeps Prime members engaged with Amazon’s software services while using Uber’s platforms.

Prime Member Value Proposition

For Amazon, adding Uber Eats to Prime’s bundle of benefits strengthens justification for the membership fee, which generates recurring revenue and drives engagement across its broader ecosystem. Food delivery has become a standard feature among competing subscription services, and its absence from Prime membership created an apparent gap in the offering.

For Uber, the partnership guarantees access to Prime’s 200 million-plus members and provides a channel for customer acquisition that bypasses traditional marketing spend. The arrangement also establishes a pathway for converting occasional food delivery users into habitual Uber Eats customers who might later transition to other Uber services.

Market Context

The shift reflects ongoing consolidation in the U.S. food delivery sector, where a handful of large platforms dominate the market. GrubHub, which operates independently after its ownership transitions, loses a significant channel partner. The partnership change does not require subscribers to take action: those currently using GrubHub+ through Prime membership can continue ordering through that service if they wish, though Amazon has ceased promoting it as a Prime benefit. GrubHub did not respond to requests for comment before the announcement’s publication.

Source: TechCrunch