Just Eat Takeaway.com and Amazon enter into commercial agreement in the US - Grubhub (2024)

Just Eat Takeaway.com N.V. (LSE: JET, AMS: TKWY), hereinafter the “Company”, or together with its group companies “Just Eat Takeaway.com”, one of the world’s largest online food delivery marketplaces, has entered into a commercial agreement with Amazon.com Services LLC (“Amazon”) in the United States.

Starting today, Amazon Prime members in the United States can sign up for a free, one-year Grubhub+ membership and access unlimited $0 delivery fees from hundreds of thousands of restaurants on Grubhub throughout the year. In addition to $0 delivery on eligible orders, Grubhub+ members get access to member-only perks and rewards.

The agreement is expected to expand membership to Grubhub+, while having a neutral impact on Grubhub’s 2022 earnings and cash flow, and be earnings and cash flow accretive for Grubhub from 2023 onwards.

Adam DeWitt, CEO of Grubhub, said: “I am incredibly excited to announce this collaboration with Amazon that will help Grubhub continue to deliver on our long-standing mission to connect more diners with local restaurants. Amazon has redefined convenience with Prime and 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.”

Key Terms

The commercial agreement automatically renews each year unless terminated by Amazon or Grubhub in accordance with the provisions of the commercial agreement. Under the commercial agreement, a subsidiary of Amazon will receive warrants (exercisable at a de minimis price) over 2% of Grubhub’s fully-diluted common equity. Amazon will also receive warrants (exercisable at a formula-based price) over up to a further 13% of Grubhub’s fully-diluted common equity, the vesting of which is subject to the satisfaction of certain performance conditions, principally the number of new consumers delivered through the commercial agreement. In certain circumstances the warrants can vest on an accelerated basis, in full or in part. Vested warrants may, in certain scenarios, be settled in cash or Company shares.

The commercial agreement with Amazon constitutes a Class 2 transaction under the UK Financial Conduct Authority Listing Rules. The gross assets of Grubhub as at 31 December 2021 were €6,521 million and the loss before tax for the 12 months ending 31 December 2021 was €403 million.

The Company, together with its advisors, continues to actively explore the partial or full sale of Grubhub. There can be no certainty that any agreement with any other parties regarding Grubhub will be reached or about the timing or terms of any such agreement(s). Any further announcements will be made as and when appropriate.

Just Eat Takeaway.com

Jitse Groen, CEO

Brent Wissink, CFO

Investors:
Joris Wilton
E: IR@justeattakeaway.com

Media:
E: press@justeattakeaway.com

For more information, please visit our corporate website: https://justeattakeaway.com

About Just Eat Takeaway.com

Just Eat Takeaway.com (LSE: JET, AMS: TKWY) is a leading global online food delivery marketplace.

Headquartered in Amsterdam, Just Eat Takeaway.com is focused on connecting consumers and restaurants through its platforms. With over 634,000 connected partners, Just Eat Takeaway.com offers consumers a wide variety of food choice. Just Eat Takeaway.com mainly collaborates with delivery restaurants. In addition, Just Eat Takeaway.com provides its proprietary restaurant delivery services for restaurants that do not deliver themselves.

Just Eat Takeaway.com has rapidly grown to become a leading online food delivery marketplace with operations in the United States, United Kingdom, Germany, the Netherlands, Canada, Australia, Austria, Belgium, Bulgaria, Denmark, France, Ireland, Israel, Italy, Luxembourg, New Zealand, Poland, Slovakia, Spain and Switzerland, as well as through partnerships in Colombia and Brazil.

Market Abuse Regulation

This press release contains inside information (i) as meant in clause 7(1) of the Market Abuse Regulation and (ii) in terms of Article 7(1) of the Market Abuse Regulation as it forms part of UK law pursuant to the European Union (Withdrawal) Act 2018.

Disclaimer

Statements included in this press release that are not historical facts are, or may be deemed to be, forward-looking statements, including “forward-looking statements” made within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms “anticipates”, “expects”, “intends”, “may” or “will” or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may and often do differ materially from actual results, reflect the Company’s current view with respect to future events and are subject to risks relating to future events, including risks from or uncertainties related to innovation; competition; brand & reputation; acquisitions; global strategic projects; technological reliability and availability; social change, legislation & regulation; data security and privacy; financial reporting, people, operational complexity of hybrid model and integration & transformation, as well as those contained in the Company’s filings with the SEC, including the Company’s registration statement on Form 20-F and Current Reports on Form 6-K, which may be obtained free of charge at the SEC’s website, http://www.sec.gov, and the Company’s Annual Reports, which may be obtained free of charge from the Company’s corporate website, https://justeattakeaway.com.

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. Forward-looking statements reflect knowledge and information available at, and speak only as of, the date they are made, and the Company expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statement contained in this announcement. Readers are cautioned not to place undue reliance on such forward-looking statements.

No Offer or Solicitation

This presentation shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Just Eat Takeaway.com and Amazon enter into commercial agreement in the US - Grubhub (2024)

FAQs

Did Amazon strike a deal with the US food delivery service Grubhub? ›

The initial deal was struck for a year in 2022 and then the companies extended it for a year in 2023. The new deal bundles the Grubhub membership with Prime and integrates it on its app and the website. It will remain available to the loyalty users "every year thereafter as long as they remain with Prime," Amazon said.

Is Grubhub part of Just Eat Takeaway? ›

Grubhub Inc. U.S. Founded in 2004, it has been a subsidiary of the Dutch company Just Eat Takeaway since 2021. Grubhub has been criticized for antitrust price manipulation, listing restaurants without permission, and allegedly misclassifying workers.

How much did Just Eat Takeaway pay for Grubhub? ›

The company has faced growing calls from prominent shareholders to divest its Grubhub division. Just Eat Takeaway.com completed its acquisition of the U.S. food ordering platform for $7.3 billion barely a year ago, pipping Uber and Germany's Delivery Hero to a deal after a heated takeover battle.

How does Amazon and Grubhub work together? ›

Amazon customers can now access Grubhub conveniently on Amazon.com and in the Amazon Shopping app, enabling them to order Grubhub while shopping on Amazon without having to download or switch to the Grubhub app. Visit amazon.com/grubhub to complete a food delivery order with Grubhub.

Why did Grubhub fall behind? ›

Groen attributes this decline in part to the tapering off of the boom that the company saw when it initially partnered with Amazon last year to offer U.S. Prime customers free one-year Grubhub+ membership, suggesting that the aggregator's move in June to double down on the deal has not been enough to recover sales ...

Did Amazon and Grubhub merge? ›

Amazon in July 2022 secured the rights to take a 2% stake in Grubhub, the U.S. subsidiary of Just Eat Takeaway.com, with the option to increase its stake to 15% if it met certain performance factors, such as the new number of customers added.

Who is Grubhub owned by? ›

Grubhub is a part of Just Eat Takeaway.com, a leading global online food delivery marketplace, and features 375,000 merchants in over 4,000 U.S. cities. We help restaurants grow their businesses and experiment with new concepts. We provide drivers flexible opportunities to work and earn.

Does Uber own Grubhub? ›

Grubhub was bought by a Dutch company, Just Eat Takeaway, last month. Uber avoided antitrust scrutiny after its Grubhub talks fell apart, but could face new questions over its acquisition of Postmates.

Is takeaway com the same as Just Eat? ›

Just Eat Takeaway.com N.V. (formerly Takeaway.com; founded as Thuisbezorgd.nl) is a Dutch multinational online food ordering and delivery company, formed from the merger of London-based Just Eat and Amsterdam-based Takeaway.com in 2020.

Does anyone still use Grubhub? ›

Since 2015, Grubhub has steadily lost marketshare in the US, as Uber Eats and DoorDash claimed more users. From a high of 70 percent, Grubhub sits at less than 20 percent marketshare in 2020, behind DoorDash at 45 percent and Uber Eats (with Postmates) at 30 percent.

Who is the CEO of Just Eat Takeaway? ›

How much do Grubhub drivers get paid without tips? ›

Guaranteed minimum pay​​

$0.34 per mile compensation is paid per mile you drive during an active delivery period.

How much of Grubhub does Amazon own? ›

Amazon now owns 7% of Grubhub through a partnership that started in 2022 and is being extended for five more years.

Did Amazon buy Grubhub or DoorDash? ›

In the previous deal, Amazon acquired the rights to buy a 2% stake in Grubhub. Just Eat Takeaway announced in a separate news release Thursday that Amazon has received warrants representing 4% of Grubhub's equity and could receive a further 10% based on certain conditions.

What is a Grubhub service fee? ›

Grubhub Delivery

Deliver the way you want to with flexible delivery service options. For a 10% service fee per delivery, you can expand your reach using Grubhub's fleet of delivery drivers or supplement with your own.

Who is in charge of Grubhub? ›

A message from Howard Migdal, Grubhub CEO.

Is Dominos part of Just Eat? ›

Domino's Pizza, delivered

Whatever your favourite toppings, make Pizza Night exciting with a Domino's Pizza delivery. With Just Eat, your pizza will arrive straight to your front door.

Are DoorDash and Grubhub owned by the same company? ›

Short Answer: No, They're Not the Same

Founded in 2012, DoorDash hails from a group of Stanford University students and has since climbed to the top. It reigns supreme in the U.S. food delivery market with over 60% market share. Grubhub, on the other hand, is another major player but operates independently.

Is Grubhub different than Uber eats? ›

Uber Eats has the most online resources available to make getting started easier if you're new to delivery apps. Grubhub isn't the most popular app with just 8% of the market share, but it might be a fit if you're in New York City or other major cities where it's most popular.

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