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Worth noting Market event Thu, Nov 5 2 min read
Amazon and Uber announced on November 5 that U.S. Prime members can now order restaurant meals through Uber Eats directly on Amazon.com and in the Amazon Shopping app, with a $0 delivery fee on orders of $25 or more. Prime is Amazon’s paid membership service.[1]
The partnership lets members order through Amazon from hundreds of thousands of Uber Eats restaurants.[2]A separate report says Uber Eats becomes Prime’s official U.S. restaurant-delivery partner, effectively ending Amazon’s existing arrangement with Grubhub.[3]
Ordering inside Amazon removes a step for shoppers, while the fee waiver lowers the cost of qualifying orders. That could bring Uber Eats more orders or shift existing orders away from competing delivery services; losing this route to Prime members may leave Grubhub seeking other ways to reach those customers.[1][3]
More orders could lift sales at participating restaurants and give shoppers another everyday reason to use Amazon’s membership. The profit benefit depends on how much additional ordering the offer generates and what it costs to provide. The supplied announcement does not say who funds the delivery-fee waiver or disclose revenue-sharing terms, leaving the earnings benefit unquantified.[1][2]
Uber Eats gains a customer-acquisition channel inside Amazon’s website and app, while Grubhub loses its Prime partnership channel. Other delivery platforms may also face pressure to compete for those shoppers, with the order shift depending on member uptake.[1][3]
Restaurants on Uber Eats can reach Prime members through Amazon. The delivery-fee waiver may encourage qualifying orders, creating a sales opportunity whose value depends on how much demand is additional.[1][2]
Amazon adds an everyday spending benefit that could give Prime members another reason to renew. Competing membership services face a broader package of perks, though any improvement in Prime retention remains unproven.[1]