The financial crisis in the food delivery industry is opening up new opportunities for Amazon.
The e-commerce giant signed a deal with Grubhub on Wednesday to allow Amazon Prime subscribers in the United States to waive shipping charges for orders from certain restaurants. statement According to Just Eat, a Dutch company that owns Grubhub. The agreement also gives Amazon the option to get 2% of Grubhub. This is a stock that could eventually grow to 15%.
Just Eat is emphasizing a shift in perspective on the food delivery business and is looking for ways to offload Grubhub about two years after it paid $ 7.3 billion to acquire Grubhub. The industry’s outlook has been severely hurt as pandemic restrictions have been lifted and demand for restaurant deliveries has diminished. New costs have been added due to labor shortages and tighter government regulations.
Just Eat, Europe’s largest food delivery platform, said it would continue to consider partial or full sales of Grubhub under pressure from investors to improve its business. Grubhub dominates about 13% of the US food delivery market, while DoorDash accounts for nearly 60%, Uber Eats accounts for 24%, and Grubhub has lower sales per customer than its major rivals. Is recorded. Bloomberg Second Major.. Just Eat’s share price has fallen by more than 60% this year, even after a significant increase in Amazon news on Wednesday.
Amazon also owns a stake in Deliveroo, a struggling UK food delivery service, whose market share has declined by about 50% this year. Another European food delivery company, Delivery Hero, has confirmed that stock prices have fallen by more than 60%. Uber and DoorDash’s share has fallen by nearly 50% this year.
