Amazon & Grubhub Strategic Partnership Could Be Bigger Than Jeff Bezos Biceps
Episode description
Grubhub and Amazon recently announced they had entered into a strategic partnership. As a part of the deal, Amazon Prime members in the United States have the ability to get Grubhub Plus for an entire year free. That means somewhere around 150 million American households that reportedly have an Amazon Prime membership can use Grubhub without delivery fees in more than 4,000 U.S. cities. That’s fairly massive news if you ask me. Why? I'll explain why why each party entered into this strategic partnership. Furthermore, I'll assume this strategic partnership goes well between Amazon and Grubhub to the point that Amazon exercises warrants to reach 15 percent ownership and then begins considering the acquisition of the entire Grubhub asset. I'll breakdown the reasons Amazon would be interested in that idea. I don’t like to throw around the disruptive word willy nilly, but there’s a lot to get excited about for Amazon if things positively work out.
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