users using food delivery apps (76.86 mln), we used the penetration rate of food delivery users (48.1%) and multiplied it by the number of Amazon Prime users (159.8 mln). To estimate the number of Amazon Prime U.S. Source: eMarketer, Statista, Khaveen Investments Total Additional User Opportunity from Prime Members for Grubhub ('mln') ('f') Grubhub Share of Total Food Delivery Users ('d')Įstimated Number of Prime Members Using Grubhub ('mln') ('e')

Penetration Rate of Food Delivery Services in the US ('b')Įstimated Number of Prime Members Using Food Delivery ('mln') ('c') Prime users of 159.8 mln in 2021 in comparison to Grubhub users to determine the potential user growth opportunity for Grubhub.Īmazon Prime Members in the US ('mln') ('a') With the assumption that Grubhub subsidizes the membership cost, we analyzed Amazon U.S. On top of that, we expect the Amazon partnership to provide a boost to its user growth. In the table above, we projected Grubhub's user growth based on its past 5-year average customer base increase of 5.14 mln users per year. Source: Business of Apps, Khaveen Investments As mentioned by the company, 'the agreement is expected to expand membership to Grubhub+.'Īdditional Users from Amazon Partnership ('mln') Partnership with Amazon Provide User Growth of 62 Mln UsersĪmazon partnered with Grubhub where Amazon Prime members can enjoy a free one-year Grubhub+ membership (normally $9.99/month) with their Prime membership. ( OTCPK:JTKWY ) in 2021 for $7.3 bln and accounted for 18% of revenue in 2021. Thus, we analyzed the potential opportunity for Grubhub with this partnership with Amazon in terms of users, transaction volume, and market share growth.

Prime members with 1-year of free Grubhub+ subscription offering free delivery for a minimum order value of $12. Furthermore, Amazon is providing its U.S. ( AMZN) recently announced its agreement to acquire a stake (2%) in Grubhub but with a warrant to further increase it by another 13% for a total stake of over 15%.

Download free grubhub with amazon prime