Amazon has agreed to take a 2 percent stake in Just Eat Takeaway’s U.S. business Grubhub as part of a broader deal with the online food delivery group.
The deal will also give Amazon Prime users in the U.S. a one-year membership to Just Eat’s Grubhub food delivery service, the Amsterdam-based company said Wednesday.
eat it One of the world’s largest operators of food delivery apps has more than halved its market value this year due to slowing growth and investor criticism of its $7.3 billion acquisition of Grubhub last year.
Just Eat said the Amazon deal would “expand Grubhub+ membership while being neutral to Grubhub’s earnings and cash flow in 2022 and accretive to Grubhub’s earnings and cash flow from 2023 onwards”.
Under the agreement, the U.S. technology company will Grub May rise to 15%.
Shares in Just Eat rose 18 percent to 16.24 euros in early trade on Wednesday.
Grubhub CEO Adam DeWitt said in a statement that the deal will “help Grubhub continue our long-term mission of connecting more diners with local restaurants.”
“Amazon has redefined the convenience of Prime, and we believe this service will enable many new diners to understand the value of Grubhub+, while bringing more business to our restaurant partners and drivers,” he added.