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.

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