The best thing about a human life is how you can always make it better, regardless of the surrounding circumstances. This element, in particular, has allowed us to hit upon some massive milestones along the way. Now, while each of the stated milestones has notably brought a unique value to our lives, none have been as impactful for the world as a creation called technology. You see, technology went on to create such a dynamic that we had never seen before. In case the stated reality in itself wasn’t enough, the creation also made sure to realize something similar across each and every on our spectrum, therefore getting us to become a wholly tech-driven society. Nevertheless, despite achieving so much, technology’s revolution won’t slow down at all. Instead, building upon its previous momentum, the idea will continue to get stronger and stronger over time, and by doing so, it would conceive many more inroads for us to grow further. In fact, one recent partnership between Amazon and Grubhub appears as one such inroad.
Amazon and Grubhub have officially announced a partnership, with their agreement all-set to stretch across one full year. Under the fleshed out terms, Amazon will acquire a 2% stake in the food delivery giant, but this share can notably rise up to settle around 15%, if certain performance conditions are fulfilled. Talk a little more about the critical details of this collaboration, Amazon will offer all Prime members a completely free access to Grubhub’s subscription, which translates to zero-cost delivery, as well as many other valuable discount deals. The arrangement is expected to make the company’s Prime membership package more attractive moving forward, while giving Grubhub a chance to tap into a significantly wider consumer base. However, alongside working up the financial efficiency on every front, the partnership is also a last-ditch effort from Amazon to find a place for itself in the food delivery business. Up until now, the e-commerce baron has made several attempts at unlocking a reliable revenue stream in food delivery, but it is still chasing that long elusive breakthrough. The move from both companies, though, comes at an interesting time, considering the sector in question has been on somewhat of a decline after losing the famous pandemic bump.
“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,” said Adam DeWitt, CEO of Grubhub.
The announcement of this partnership tanked the shares of many delivery platforms, sending Uber’s shares down by 3%, and as for DoorDash, it took a hit of 9% in its stock price.