Hospitality Technology

Amazon Dumps Grubhub, Puts Uber Eats Into Prime With $0 Delivery Fees

Amazon Prime members now get $0 delivery fees on Uber Eats orders of $25 or more in nearly 10,000 cities, replacing the Grubhub+ perk that ended Thursday.

Amazon switches to Uber Eats for restaurant delivery perks
Amazon switches to Uber Eats for restaurant delivery perks — Surprising_Media / pixabay

Amazon Prime members woke up Thursday to a changed delivery menu: Uber Eats is in, Grubhub+ is out, and the new perk promises $0 delivery fees on restaurant orders of $25 or more across nearly 10,000 U.S. cities.

Prime subscribers can now order from hundreds of thousands of restaurants in Uber Eats' network directly inside Amazon's website and app — no Uber account required. Amazon's site confirmed the Grubhub arrangement, which gave members free access to Grubhub+, ended as of Thursday.

What does the deal actually get members?

The structure is simpler than the one it replaces. The old Grubhub deal bundled full access to Grubhub+, a $9.99 monthly subscription that offered free delivery and reduced fees on eligible orders. The new Uber Eats benefit strips that down to a delivery-fee waiver above the $25 threshold, embedded in the Amazon experience rather than a separate membership.

Amazon put a number on it: potential savings of up to $175 a year. As a launch sweetener, Prime members get $20 off each of their first two Uber Eats restaurant orders of $25 or more. Ordering runs through amazon.com/ubereats or an "Uber Eats" search in the Amazon Shopping app; members enter Prime credentials and browse the catalog.

"Whether it's game night, family night, or date night, Prime's new Uber Eats membership benefit makes getting dinner delivered even easier," Jamil Ghani, Worldwide VP of Amazon Prime, said in a statement.

The perk lands inside a subscription that costs $139 a year or $14.99 a month, and that already bundles Prime Video, Amazon Music, free shipping and grocery savings at Whole Foods and Amazon Fresh. Amazon counted more than 200 million members worldwide as of 2021. For restaurant operators on Uber Eats' network, that install base now carries a built-in incentive — a fee waiver — to push average orders above $25, a threshold that quietly rewards ticket-building menu pricing.

Why now? The super-app race is getting expensive

Timing matters here. The announcement comes a week after DoorDash said it would buy grocery delivery service Instacart, a deal expected to squeeze delivery rivals as they race to become super apps. Amazon and Uber both face mounting pressure from DoorDash and Walmart in the delivery market.

The market rendered its own verdict on Thursday afternoon: Uber stock slipped 1.86%, while DoorDash shares plummeted 14%.

For restaurants, the calculus is straightforward. Grubhub just lost its most direct pipeline into Prime households, while Uber Eats gained one — meaning franchise and independent kitchens alike should expect order volume to shift toward the platform that just bought itself a seat inside Amazon's checkout flow. With DoorDash and Instacart consolidating on the grocery side, expect the next round of exclusive perks to target meal kits, convenience and grocery-adjacent menus as each platform fights to own the whole basket.

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Daniel Okafor

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Correspondent covering companies, deals and strategy in Restaurant and hotel operations at The Pass Brief.

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