Amazon Selects Uber Eats as Prime Delivery Partner

Amazon has adopted Uber Eats as its official restaurant delivery service partner for US Prime members, replacing GrubHub, which previously held this role.

Amazon's integration of food delivery into Prime member benefits is part of its effort to expand the scope of its membership services. Prime originally centered on free shipping and video streaming, but in recent years has expanded its benefits to include grocery delivery, healthcare, gaming, and more. Food delivery fits within this expanding scope.

With this partnership, the relationship with GrubHub ends, and Uber Eats becomes the new partner. The offering targets Prime members in the United States and will allow them to access restaurant delivery services through Uber Eats.

In the food delivery market, Uber Eats is one of the major players with a broad business presence in the US. Partnering with a platform of Amazon's member scale has the potential to increase Uber Eats' user base. For Amazon, the partnership offers the opportunity to increase occasions when members use Prime on a daily basis, creating a mutually beneficial arrangement for both companies.

GrubHub once led the food delivery market but has seen its market share decline in recent competition with Uber Eats and DoorDash. The dissolution of its partnership with Amazon represents a significant development for GrubHub.

Going forward, attention will focus on how this partnership affects Prime members' usage behavior. Whether incorporating food delivery as a routine benefit will further increase Prime's stickiness—its resistance to cancellation—will be worth monitoring from the perspective of changes in member count and usage frequency.