Amazon has forged a partnership with Uber Eats that will allow members of its Prime service to order food and grocery delivery through the Amazon app while avoiding certain delivery-related fees charged by Uber.
The partnership announced on Thursday will replace an arrangement Amazon had with Grubhub to offer Prime members complementary access to the premium delivery subscription Grubhub Plus, though Prime users who activated a complementary Grubhub Plus membership will be able to use it through the end of 2027.
The deal with Uber expands on a long-standing business arrangement between the travel-focused tech company and Amazon. Like other companies, Uber operates some of its tech on top of Amazon Web Services, and the companies have other business deals that involve Uber’s fleet of robotic taxicabs and Uber deliveries placed through Amazon’s Alexa smart assistant.
The deal with Uber allows Amazon Prime customers to place food and grocery delivery orders from within Amazon’s own website and smartphone apps, without requiring customers to create an Uber account. Orders will be fulfilled by Uber Eats, and Prime members will not be charged a delivery fee if they order at least $25 worth of food or groceries, Amazon said.
To encourage customers to use the service, Amazon offered Prime members $20 off their first two orders within the next two weeks, though the coupon is only available for orders over $25.
Grubhub is part of Wonder, putting it under common ownership with meal kit delivery service Blue Apron and streaming platform Tastemade. Grubhub and Uber Eats’ core competitor, Doordash, is in the process of acquiring Instacart for $17 billion in cash and stock.
