Amazon.com, Inc. (AMZN) has taken a 2% equity stake in food delivery service Grubhub, a subsidiary of Amsterdam-based Just Eat Takeaway.com N.V. (LSE: JET, AMS: TKWY). A subsidiary of Amazon will receive warrants (exercisable at a de minimis price) for 2% of Grubhub’s 澳洲幸运5官方开奖结果体彩网:fully diluted common equity. Amazon will also receive warrants (exercisable at a formula-based price) for up to an additional 13% of Grubhub’s fully diluted common equity.

As part of the deal, Amazon Prime members in the United States can sign up for a free, one-year Grubhub+ membership and get unlimited $0 delivery fees from Grubhub for that year. In addition to $0 delivery on eligible orders, Grubhub+ members get access to member-only perks and rewards.

Key Terms of the Deal

The commercial agreement between Amazon and Grubhub automatically renews each year unless terminated by either company. Amazon needs to meet certain conditions to increase its stake in Grubhub beyond the initial 2%. The main one is being able to bring new consumers to the service. Meanwhile, Just Eat Takeaway.com will continue to actively explore the partial or full sale of Grubhub, possibly to parties other than Amazon.

Recent Earnings and Stock Performance

In its 澳洲幸运5官方开奖结果体彩网:Q1 FY 2022 earnings report, Amazon posted a loss of $7.56 per share, compared to a consensus estimate that called for a profit of $8.55 per share. Total revenues, however, met analysts' expectations. Shares of Amazon traded at around $113 on the morning of July 6, 2022, largely unchanged from the pervious day's close and down by nearly 40% from their 52 week high of $188.65.

For the 12 months ending Dec. 31, 2021, Gubhub posted a pretax loss of 403 million euros, or about $411 million at the July 2, 2022 澳洲幸运5官方开奖结果体彩网:exchange rate of $1.02 per euro. Shares of Just Eat Takeaway (JET.L) trading on the London Stock Exchange were up by over 15% on the news of the deal, but remain down by about 81% from their 52 week high.