Amazon Gives Prime Members Free Grubhub+ Subscription Worth $120 a Year

Amazon (AMZN) is offering its Prime members a free Grubhub+ subscription worth $120 a year, the company said on Thursday, the retail giant’s latest effort to win over consumers to its loyalty program.

The tech company’s Amazon Prime membership is currently $139 per year. The announcement makes membership of the food-delivery company a permanent feature of joining Amazon Prime.

Prime members were offered a year-long Grubhub+ membership in July 2022 after Amazon bought a 2% equity stake in the food-delivery service, which was later extended by another year in June 2023.

Amazon previously offered its own food-delivery service for its Prime members in 2015 but reportedly shut it down in 2019 because of fierce competition from GrubHub, DoorDash (DASH), and Uber Technologies’ (UBER) Uber Eats services.

Amazon Prime Has Expanded Into Groceries, Sports-Streaming, Healthcare

In the meantime, the tech firm has been working at making Prime more of a one-stop shop. It launched a grocery delivery service for $9.99 a month in April, in an attempt to take on similar services from Walmart (WMT) and Target (TGT).

It has also gone after the sports-viewing market, a key customer base for streamers. It is reportedly in negotiations with the NBA to start streaming games on Prime Video, Puck reported last month.

Amazon has also extended its presence in healthcare by providing Prime members with discounts on medications through its pharmacy. In March, it partnered with Eli Lilly (LLY) to allow its prescription drugs to be shipped through Amazon’s online pharmacy.

Amazon shares were down 1.2% to $179.82 as of 12:40 p.m. ET Thursday but are up almost 20% in 2024.