In a major move to expand its food delivery business, Amazon has agreed to acquire Grubhub for $13.7 billion. The deal, which is expected to close in the second half of 2023, will give Amazon access to Grubhub’s network of over 100,000 restaurants in the United States.
Amazon has been looking to expand its food delivery business for some time. In 2020, the company launched Amazon Restaurants, a food delivery service that is currently available in select cities. However, Amazon Restaurants has struggled to gain traction against established competitors like Uber Eats and DoorDash.
The acquisition of Grubhub will give Amazon a much-needed boost in the food delivery market. Grubhub is one of the leading food delivery services in the United States, with over 17 million active users. The company also has a strong presence in major cities like New York, Chicago, and Los Angeles.
The deal is expected to be a boon for Amazon’s Prime members. Prime members will be able to get free delivery on Grubhub orders, which could help to boost Amazon’s Prime subscription numbers.
The acquisition of Grubhub is also a sign of Amazon’s growing ambitions in the food industry. In addition to Amazon Restaurants, Amazon also owns Whole Foods Market and Amazon Fresh. The company is also investing heavily in its own grocery delivery service.
The acquisition of Grubhub is a major coup for Amazon. The deal will give Amazon a significant foothold in the food delivery market and could help to boost Amazon’s Prime subscription numbers. It is also a sign of Amazon’s growing ambitions in the food industry.
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