Amazon Partners With Grubhub as Delivery Profits Slip

Abstract

As COVID-19 pandemic restrictions ease and consumers withdraw from relying on app-based delivery services, companies like food delivery app Grubhub have taken a financial hit. The year 2022 has been particularly difficult for Grubhub, as competitor DoorDash takes up a more dominant share of the market. In July, Amazon announced a partnership with Grubhub that would benefit its Prime members with a free membership to Grubhub+. Amazon has had its own challenges in the food delivery market and hopes the partnership will be a boon for both companies. This case asks students to examine the partnership and forecast how it will affect Amazon and Grubhub.

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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