Amazon (NASDAQ:AMZN) and Just Eat Takeaway.com (OTCMKTS:TKAYF) stocks are on the move today following news of a commercial deal concerning Grubhub.
Let’s go over everything investors need to know about this news below!
- This new deal allows Amazon Prime members to sign up for a free one-year subscription to Grubhub+.
- Grubhub+ is a new premium membership that allows customers to get unlimited free deliveries.
- This only applies to select restaurants in the United States.
- To go along with this, Prime members will get other benefits that are exclusive to Grubhub+ subscribers.
- The agreement also has Amazon taking a stake in Grubhub.
- That includes a subsidiary of AMZN getting warrants for a 2% stake in the food delivery service.
- Amazon will also directly get warrants for a further 13% stake in Grubhub.
- It’s worth mentioning that all of this comes at the same time that Just Eat Takeaway.com is considering a full or partial sale of Grubhub.
- Also, Grubhub expects the Prime agreement to increase Grubhub+ while having a neutral effect on its earnings and cash flow for 2022.
Adam DeWitt, CEO of Grubhub, said the following about the deal with Amazon.
“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.”
TKAYF stock is up 17.2% as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.