Amazon announced earlier this month that it entered into an agreement that could give it more than a 15% equity stake in Grubhub, and that Prime members in the U.S. can sign up for a free, one-year Grubhub+ trial subscription that will provide unlimited free restaurant deliveries.
According to reports about the deal, Grubhub parent Just Eat Takeaway said Amazon will receive warrants for about 2% of Grubhub’s fully diluted common equity, as well as warrants for up to another 13%. The vesting of the additional warrants depends on certain performance conditions, primarily the number of new customers delivered through the deal.
The Grubhub subscription is valued at $9.99 per month and can be used at hundreds of thousands of restaurants in more than 4,000 cities.
An Amazon spokesperson said the free one-year subscription is the company’s way of saying thank you to Prime members.