Amazon is getting back into restaurant delivery with Uber Eats team-up

Ordering through Amazon

Prime members can browse takeout options on Amazon’s app or website and pay with their existing Amazon payment methods. The $0 delivery fee applies when the restaurant order reaches $25.

Amazon handles the purchase and sends delivery alerts, while Uber Eats provides the final receipt. Customers can use the service without signing up for a separate Uber account.

A partnership for both companies

Uber gains a way to reach tens of millions of Prime shoppers who already use delivery services. The partnership may also help Uber compete with DoorDash, described in the report as the larger restaurant-delivery player.

Fees may limit savings

Waiving delivery fees does not remove other costs, which can include service charges, local fees, tips, and higher menu prices. The $25 minimum may also be inconvenient for a single diner or a small lunch order.

Amazon and Uber say members could save more than $175 annually, based on frequent ordering and comparison with paying full price each time. The report says customers may need to order takeout several times each month to reach that amount.

Grubhub remains a question

Amazon had previously offered Prime members free delivery through a partnership with Grubhub. Adding Uber Eats raises the question of whether Amazon intends to work with multiple delivery services or sees Grubhub as less relevant to its members.

Whether the new deal changes Prime subscribers’ ordering habits remains uncertain. The delivery-fee waiver may help, but the order threshold and remaining costs could reduce its appeal.