Should it prove successful, Amazon still has the deep pockets to acquire Grubhub-or even its parent, which is valued at just €3.5 billion ($3.6 billion) on the Amsterdam stock market.Ī service that offers a smaller selection of restaurants than its rivals, has fewer menu options, or suffers higher costs or longer wait times will tend to lose customers to larger peers. The deal appears to also be a shrewd move for Amazon, which can offer its Prime customers an appealing food delivery service in an asset-light fashion friendly to shareholders’ equity. For a hitherto stranded asset and deadweight…this is positive news.” “Grubhub has secured not just a very powerful partner, but also a very efficient acquisition channel. “The Amazon partnership is both material and welcome,” Jefferies analyst Giles Thorne wrote in a note to investors. Shares in the Dutch company soared as much as 20% on Wednesday. can now sign up for a free, one-year membership to Grubhub’s premium “ Plus” service-at a value of about $120 currently-and get unlimited free delivery on orders over $12 from hundreds of thousands of restaurants.įor Grubhub’s European parent, Just Eat, the deal offers the strategic partner it was long looking for in the United States-and does so amid an industry that is consolidating in an effort to achieve sustained profitability. On Tuesday, the e-commerce giant said Amazon Prime members in the U.S.
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