Amazon (NASDAQ:AMZN) is improving its Prime membership perks by offering free Grubhub subscriptions to its members, a move aimed at adding further value to the $139-a-year loyalty program.
Previously, Prime members received a yearlong subscription to Grubhub, which included free delivery on orders over $12. The new deal, announced Thursday, makes Grubhub's food-delivery service a permanent benefit for Prime members.
Moreover, non-Prime members can now place Grubhub orders through Amazon's website and mobile app.
In July 2022, Amazon acquired the rights to a 2% stake in Grubhub, the U.S. subsidiary of Just Eat Takeaway.com. Just Eat noted that Amazon's stake could increase to 15% if certain performance criteria, such as the number of new customers, are met.
Amazon has made consistent efforts to expand its Prime benefits to attract and retain members, especially amid growing competition from Walmart's (NYSE:WMT) and Target’s (TGT) loyalty programs.
In addition to Grubhub, the program includes discounted One Medical memberships, fast shipping, and video streaming services.