Amazon and Just Eat Takeaway.com TKWY, +0.71%, Grubhub’s parent company, announced the partnership on Wednesday. As part of the deal, Amazon has an option (in the form of a warrant) for a 2% stake in Just Eat Takeaway.com, which can increase to 15% over time, though an Amazon spokesperson said the company has not exercised the warrant so there is no current investment.
The free year may be a good deal for Amazon and Grubhub fans, but it also requires some sorting out. Here are five things to know.
What exactly is Gruhub+? And how much can this offer save you?
Think of it as Grubhub with, well, plusses. Specifically, it’s a program, costing $9.99 per month, that eliminates delivery fees on $12+ orders from participating restaurants. Grubhub also advertises that membership comes with “exclusive perks and rewards with every order.” Your monthly savings will vary — it all depends on how frequently you order — but each delivery fee can easily run a few dollars.
Of course, if you’re not a Prime member, you’ll have to join Prime to take advantage of the deal. Prime membership runs $14.99 per month or $139 per year, according to Amazon, though students and those on government assistance can receive discounts.
What other benefits come with Amazon Prime?
The big one is free two-day delivery on Amazon orders — and in some cases, free one-day delivery. Membership also comes with Prime Video, which gives you free access to thousands of movies and TV shows, and Amazon Music for Prime members, which features two million songs, and plenty of podcasts, at no charge. Other perks include free games with Prime Gaming, free books and magazines with Prime Reading and photo storage with Amazon Photos.
There’s also Prime Day, the much-hyped event that features savings on many items purchased through Amazon. This year, the event actually runs two days — July 12 and 13.
What if you’re already an Amazon Prime and Grubhub+ member?
Amazon says you’re still eligible for the offer. Just sign up and the free year of Grubhub+ will begin at the start of your next billing cycle.
What happens after your free year of Grubhub+ is up?
Be prepared to start paying again for your Gruhub+ membership: Amazon says Gruhub will begin charging the payment method associated with your Grubhub account on a monthly basis at the then-current Grubhub+ rate. But you can cancel any time prior to the expiration of the free one-year trial and thus avoid the monthly hit.
Are there any Grubhub fees you can still expect to pay, even with a Grubhub+ membership?
Yes. Grubhub notes on its site that “Additional fees (including a service fee) may apply and vary on orders.” (Grubhub representatives didn’t immediately respond to a query from MarketWatch, other than to share the press announcement of the partnership.) You’ll also have to pay applicable taxes on your order. Plus, don’t forget to tip.