NEW YORK (AP) — Amazon is adding a new restaurant delivery perk for its Prime members, escalating the food delivery wars.
The Seattle-based online behemoth said Thursday that it has agreed to add Uber Eats to its list of services for Amazon Prime members in the U.S. The service, which will be effective immediately, will allow members to order from hundreds of thousands of restaurants from Uber Eats directly from Amazon.com and within the retailer's shopping app with no delivery fees for orders over $25, the companies said in a joint release.
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At launch, Prime members can get started with $20 off the first two Uber Eats orders of $25 or more, eligible for the first 14 days, according to the release.
The tie-up with Uber Eats marks Amazon's second partnership with a restaurant delivery partner. In 2024, Amazon added Grubhub for Amazon Prime members and has been adding more perks for these members who pay $14.99 monthly, or $139 annually, for an annual subscription for free shipping. The offer with Grubhub for these customers will wind down when the Uber Eats partnership kicks in, Amazon said.
Andrew Macdonald, president and chief operating officer of Uber, noted in the release that together with Amazon, it “built an experience for Prime members designed to make restaurant delivery feel as natural, convenient, and affordable as ordering anything else on Uber Eats.”
The announcement comes as DoorDash announced last month that it was offering $17 billion to buy Instacart in a deal that could consolidate the grocery delivery business in the U.S. and abroad.
The companies said the tie-up would combine DoorDash’s global reach and expertise in logistics with Instacart’s purpose-built technology and long relationships with grocers. It could also help the companies better compete with rivals moving into restaurant delivery.
Also on Thursday, ride sharing company Lyft unveiled a rideshare and delivery membership program with DoorDash. For $9.99 per month, or $96 annually, members can get credits toward future rides or delivery orders.
Walmart is also pushing into restaurant delivery. In its first deal with a restaurant delivery partner, Walmart partnered with Subway, its largest in-store restaurant tenant, this past summer. It has since expanded to select locations at Dunkin’ and Papa Johns. The company said it now has 2,400 restaurant locations on its restaurant delivery platform.
Since launching delivery with Subway, 65% of those orders have included other items from Walmart, according to Greg Cathey, Walmart’s senior vice president of e-commerce transformation.
