AMAZON.COM To Offer Free Grubhub+ Membership For Prime Members
July 7, 2022
AMAZON.COM ($NASDAQ:AMZN) To Offer Free Grubhub+ Membership For Prime Members In an effort to boost Prime Day sales and lure customers away from competing services, Amazon has announced that Prime members in the U.S. can enjoy a free, one-year Grubhub+ membership with no food-delivery fees on eligible orders, effective today. In exchange, Amazon will receive warrants representing 2% of Grubhub’s shares, and an additional 13% of shares conditional on the deal bringing Grubhub enough customers. It remains to be seen how this move will affect Amazon’s market share and earnings in the long term, but it’s certainly a bold gambit to try and steal business away from the likes of DoorDash, Uber Eats, and Postmates. With Amazon’s vast resources and reach, it’s certainly possible that this could be a very successful partnership for both companies. However, only time will tell if this is a winning strategy for Amazon in the long run.
Company fundamentals are important indicators of a company’s long-term potential. The following is a simplified analysis of Amazon.com using the VI app. The VI Star Chart shows that Amazon.com is strong in asset, growth, and medium in profitability and weak in dividend. Amazon.com has a high health score of 8/10 with regard to its cashflows and debt, indicating that it is capable of sustaining future operations in times of crisis. Amazon.com is classified as a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. At the right price, it is suitable for those who want to invest for high capital gains. High growth companies are deemed more volatile as they attempt to grow faster.
Investing in Amazon.com could be a smart move, especially if you’re a Prime member. This membership gives you free delivery and discounts on food orders from Grubhub, Seamless, and other participating restaurants. Plus, with Amazon’s stock price up 0.7% following the news, it looks like investors are betting that this move will pay off. So why invest in Amazon? Well, the company has a history of making smart acquisitions and integrations that benefit both its customers and its bottom line. For example, Amazon’s purchase of Whole Foods has made it easier for Prime members to get their groceries delivered. And, of course, there’s the company’s highly successful Prime membership program, which offers free shipping and other perks to subscribers. With all of this in mind, it seems like a safe bet that Amazon will continue to be a strong performer in the years to come.
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