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Business · Raleigh

Amazon Integrates Uber Eats Into Prime Subscription Benefits

The Seattle retailer will absorb delivery fees for orders over $25, replacing its existing partnership with Grubhub.

By Wyatt Cooper ·

Illustration for: Amazon Integrates Uber Eats Into Prime Subscription Benefits
Illustration generated for this article, not a news photograph.

Amazon announced on Thursday that it will integrate Uber Eats into its Prime subscription package for customers in the United States. The agreement takes effect immediately and allows Prime members to order from hundreds of thousands of restaurants directly through Amazon.com or the company's shopping app. Under the new terms, Prime members pay no delivery fees for orders totaling more than $25.

To encourage initial adoption, Amazon will offer a $20 discount on the first two Uber Eats orders that meet the $25 minimum. This promotional credit is available for the first 14 days following the launch. The company stated that this new integration supersedes its previous arrangement with Grubhub, which will wind down as the Uber Eats partnership begins.

Prime subscribers pay $14.99 per month or $139 per year for the service, which traditionally includes free shipping benefits. This is Amazon's second major partnership with a restaurant delivery platform. The retailer added Grubhub to its perks in 2024. By consolidating delivery options under Uber, Amazon seeks to streamline its third-party logistics network for dining customers.

Andrew Macdonald, president and chief operating officer of Uber, commented on the collaboration in a joint release. He stated that the companies built an experience designed to make restaurant delivery feel as natural, convenient, and affordable as ordering other goods. Macdonald emphasized that the integration aims to reduce friction for Prime users accessing food services.

The move occurs against a backdrop of consolidation in the local logistics sector. DoorDash announced last month that it is offering $17 billion to acquire Instacart. That deal aims to combine DoorDash's global logistics reach with Instacart's grocery technology and retailer relationships. Analysts view such mergers as a strategy to strengthen competition against large retailers entering the delivery space.

Walmart has also expanded its delivery footprint. The retailer partnered with Subway this summer as its first restaurant delivery tenant. It has since added select locations for Dunkin' and Papa Johns. Walmart reported that it now hosts 2,400 restaurant locations on its delivery platform. Greg Cathey, Walmart's senior vice president of e-commerce transformation, noted that 65% of delivery orders include additional items purchased from the store.

Amazon's decision to switch from Grubhub to Uber Eats shifts the competitive dynamics among delivery platforms. The immediate integration allows Prime users to access a wider network of restaurants without additional per-order costs above the threshold. The $20 introductory discount provides a direct financial incentive for users to test the new checkout flow within the Amazon ecosystem.

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