Amazon is expanding its Prime membership benefits with a new restaurant delivery offer tied to Uber Eats. The change replaces a similar arrangement with Grubhub and comes as competition in food and grocery delivery continues to intensify.
Highlights
- Amazon Prime members can now order Uber Eats through Amazon and avoid delivery fees on orders of $25 or more starting immediately.
- Prime members receive $20 off each of their first two Uber Eats orders of $25 or more when placed via Amazon, replacing benefits from the now-ended Grubhub partnership.
- Amazon’s move follows DoorDash's planned $17 billion Instacart acquisition and Walmart’s restaurant delivery expansion, intensifying competition among platforms integrating food and grocery delivery.
Prime benefit rollout and partnership shift
As reported by Business Insider, citing Amazon, Prime members can now order food through Uber Eats via Amazon and avoid delivery fees on orders of $25 or more.The companies also said members get $20 off each of their first two orders of $25 or more. Users must place Uber Eats orders through Amazon to access the benefit, and Amazon said customers can begin ordering immediately without needing a new app, Uber account, or separate credentials.
Amazon is ending its partnership with Grubhub as part of the move. That arrangement had offered similar benefits to Prime members and had been in place since 2022.
Delivery competition sharpens across the sector
The new tie-up adds to a broader reshaping of the delivery market, as large retail and platform companies push to widen their reach across restaurant and grocery orders.Last week, DoorDash said it plans to acquire Instacart in a $17 billion deal, a transaction that would combine retail relationships spanning supermarkets and restaurants. The deal is expected to take at least a year to close.
Walmart is also expanding in restaurant delivery after building its own network of gig workers for grocery deliveries from stores. For Amazon, the Uber Eats partnership becomes another Prime feature alongside free access to Alexa+, same-day fresh grocery delivery, and a fuel discount.
Walmart’s push into e-commerce, delivery, and AI-driven customer tools has been reinforcing its value proposition amid persistent inflation, supporting market share gains and improving margins. Our publication previously noted that analysts see upside tied to Walmart’s expansion into higher-margin businesses, increased automation, and digital services such as its AI shopping assistant Sparky, which is associated with larger customer baskets.
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