(MENAFN- Baystreet.ca)
Amazon Takes 2% Stake In Food Delivery Company Grubhub
E-commerce giant Amazon (AMZN) is taking a 2% stake in food delivery company Grubhub and
plans to offer the service to its Prime members for one year.
The deal is a big win for Grubhub parent company Just Eat Takeaway (TKWY), Europe's largest
meal delivery company. Shareholders of Just Eat Takeaway have demanded that the company
sell itself or find a partner for Grubhub, which it bought last year for $5.8 billion U.S.
Just Eat Takeaway said in a news release that it continues to“explore the partial or full sale of
Grubhub” even after the deal with Amazon.
The deal, which was announced as part of Amazon's July“Prime Day” sales event, will see
Amazon customers receive free Grubhub delivery on orders over $12 U.S. for one year.
In exchange, Amazon will receive warrants representing 2% of Grubhub's shares, and an
additional 13% of shares conditional on the deal bringing Grubhub enough customers.
Shares of Just Eat Takeaway rose 19% on news of the deal with Amazon. Year to date, the
stock is down 67% at 16.40 Euros per share.
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