More than three years after shutting down its own similar service in the US, Amazon signed a deal on Wednesday to acquire a 2% stake in the American food delivery platform.
Amazon will buy a 2% stake in the company.
All Amazon Prime members in the U.S. will get a year of free access to the $10/month subscription service, which allows them to order food with zero delivery fees.
The deal will not affect the company's earnings or cash flow this year.
Unless either Just Eat or Amazon decide to end the deal, it will be renewed every year.
As part of the deal, Amazon could increase its stake in GrubHub.
Just Eat is interested in either a partial or full sale of the food delivery service.
The price of Just Eat's Amsterdam-listed shares have gone up since the deal was announced.
Amazon has attempted to tackle the restaurant delivery market before, with the addition of GrubHub. Prime members in several U.S. cities were able to order food from local restaurants through Amazon Restaurants. The company was forced to shut down due to it's inability to compete with other food delivery companies. Amazon signed a deal with Deliveroo to give Prime members in the UK and Ireland free delivery. Deliveroo raised $575 million in a funding round. Just Eat won the bidding for GrubHub for $7.3 billion. The acquisition was meant to give the European delivery giant a presence in the U.S.
Amazon bought a stake in US food delivery service.
The Wall Street Journal reported that the partnership deal could include a small equity stake.
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