Amazon switches to Uber Eats for restaurant delivery perks
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Prime members will get $0 delivery fees on Uber Eats orders of $25 or more.Photo: Shutterstock
Amazon is switching up its food delivery perks for Prime members.
The ecommerce giant will now offer delivery through Uber Eats for members of its subscription program. Prime users will be able to order Uber Eats directly within Amazon’s website and app, and will also get $0 delivery fees on orders of $25 or more. Notably, they do not need to have an Uber account to order.
The partnership replaces a similar deal between Amazon and Grubhub that gave Prime members free access to Grubhub+ and allowed them to order from Grubhub within Amazon.
An Amazon spokeperson said the company is always evaluating its third-party offers and said that Uber will give Prime members “an even better restaurant delivery experience,” including a wider selection.
It comes as Amazon and Uber face rising competition from DoorDash and Walmart in the delivery market.
The Uber Eats benefit will extend to Prime members in nearly 10,000 cities across the country, providing access to hundreds of thousands of restaurants in Uber Eats’ delivery network.
“Whether it’s game night, family night, or date night, Prime’s new Uber Eats membership benefit makes getting dinner delivered even easier,” said Jamil Ghani, Worldwide VP of Amazon Prime, in a statement.
Amazon Prime costs $139 a year or $14.99 a month and provides numerous perks, including free delivery, access to Prime Video and Amazon Music, and savings on groceries at Whole Foods and Amazon Fresh. Hundreds of millions of people use Prime worldwide, Amazon said.
Integrating Uber Eats into the experience, with the offer of free delivery, counts as one more benefit for members. It differs slightly from the Grubhub option, which included full access to Grubhub+, a $9.99 monthly subscription that offers free delivery and lower fees on eligible orders.
In a statement, a spokesperson from Grubhub owner Wonder said the two companies mutually agreed to end their arrangement. However, Prime members who are currently signed up for Grubhub+ will continue to get the benefit through December 31, 2027.
Amazon said the Uber Eats deal offers potential savings of up to $175 a year. To kick off the partnership, it’s giving Prime members $20 off each of their first two Uber Eats restaurant orders of $25 or more.
To order Uber Eats on Amazon, Prime members can go to amazon.com/ubereats or search “Uber Eats” in the Amazon Shopping app. Once they enter their Prime credentials, they can begin browsing the Uber Eats catalog.
The announcement comes just a week after DoorDash announced a deal to buy grocery delivery service Instacart. The acquisition is expected to put pressure on delivery rivals, including Amazon and Uber Eats, as they race to become super apps.
Uber stock was down 1.86% Thursday afternoon, while DoorDash shares plummeted by 14%.
UPDATE: This story has been updated with additional details from Amazon and Grubhub.
