“Amazon has redefined convenience with Prime and we’re confident this offering will expose many new diners to the value of Grubhub+,” said Grubhub CEO Adam DeWitt.
Just East Takeaway (TKAYF) shares surged higher in Amsterdam trading Wednesday after the struggling meal delivery group said retail giant Amazon (AMZN) – Get Amazon.com Inc. Report has taken a 2% stake in its U.S. division known as Grubhub.
The deal allows Just Eat, which purchased Grubhub last year in an all-share deal worth $5.8 billion, to sell another 13% stake to Amazon if their newly-unveiled promotion — which includes free delivery for orders over $12 in the 4,000 cities that Grubhub operates — attracts enough customers for the online retailer.
“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,” said Grubhub CEO Adam DeWitt. “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.”
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Just Eat Takeaway shares were marked 17.22% higher in Amsterdam at €16.104 each, while Amazon shares slipped 0.44% lower in pre-market trading to indicate an opening bell price of $113.00 each.
Uber Technologies UBER shares were marked 2.13% lower at $22.04 while DoorDash fell 5.6% to $70.70 each following news of the Amazon stake in Grubhub, as investors pared bets on market share gains for the meal delivery leders.
Uber said its Delivery division, which includes market leader Uber Eats, saw revenues rise 4% over the three months ending in March to $2.5 billion, while DoorDash posted stronger-than-expected first quarter revenues of $1.5 billion, a 35% increase from last year.
