Retailer Amazon.com Inc. (NASDAQ:AMZN) will acquire a stake in Grubhub, whose business has merged with Just Eat Takeaway.com (TKWY), and will offer its Prime users in the US an annual membership to the food delivery service.
The membership agreement will be renewed every year unless Amazon or Grubhub terminate it, Amsterdam-based Just Eat said in a statement on Wednesday. Amazon will also receive a 2% stake in Grubhub’s total capital, with options to increase the stake to 15%.
Just Eat will continue to explore a partial or full sale of Grubhub. The Dutch company announced plans to find an investor or bidder in the US in April.
Just Eat CEO Jitse Groen is trying to find a way to restart the company’s growth amid increased competition. Many companies have taken over this part of the market, and restaurants that were closed during the COVID-19 lockdown have reopened to diners.
In an October presentation to analysts and investors, Groen outlined the company’s strategy, in which he said Just Eat would target suburban areas in key markets and test mini-warehouses in New York for faster order fulfillment.
Amazon’s share is represented in the form of warrants, which will be transferred depending on the results of the partnership.
Shares of Just Eat rose 17.11% in early trading in Amsterdam. According to Freedom Finance analyst Vladimir Chernov, the quotes still have a good potential for growth today to the area of $18-19 per share, where the gap will be closed. Amazon securities in New York closed on July 5 with an increase of 3.6%, to $113.5.