Amazon agrees to investment in Just Eat's Grubhub delivery service

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Amazon is purchasing a 2% stake in Just Eat Takeaway.com's delivery service, Grubhub, and will offer the service to Amazon Prime members for a year.

Just Eat Takeaway has seen its shares dip 70% this year, with shareholders demanding it sell or find a partner for Grubhub. Just Eat had purchased Grubhub for $5.8 billion in shares last year.

The GrubHub Inc. application is displayed in the Apple Inc. App Store on an iPhone in Washington, D.C., U.S., on Saturday, Feb. 4, 2017. (Andrew Harrer/Bloomberg via Getty Images / Getty Images)

As part of the agreement, Amazon customers will be offered free delivery on orders worth $12 or more in cities where Grubhub operates. The deal with Just Eat was announced as part of Amazon's July "Prime Day" promotion on Wednesday.

The deal is expected to give a lift to Grubhub as it struggles to keep up with its competitors. Grubhub has lost share to Doordash and Uber Eats.

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Amazon will receive warrants representing 2% of Grubhub's shares under the deal, and another 13% of shares conditional on the arrangement it helps Grubhub attract enough customers. 

"The agreement is expected to expand membership to Grubhub+, while having a neutral impact on Grubhub's 2022 earnings and cash flow, and be earnings and cash flow accretive for Grubhub from 2023 onwards," Just Eat Takeaway said in a statement.

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Amazon customers will receive free delivery on orders worth $12 or more in cities where Grubhub operates. (Reuters/Carl Recine / Reuters Photos)

Just Eat said Grubhub's gross assets were worth $9.3 billion at the end of last year.

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Reuters contributed to this report.

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