Just Eat Takeaway.com Stock Climbs On Grubhub Deal With Amazon In US

(RTTNews) - Shares of Just Eat Takeaway.com N.V. (JET.L, GRUB) were gaining around 17 percent in the morning trading in London after the online food delivery company Wednesday announced that it has entered into a commercial agreement involving Grubhub Inc. with Amazon.com Services LLC in the United States.

Under the deal, a subsidiary of Amazon will receive warrants over 2 percent of Grubhub's fully-diluted common equity. Amazon will also receive warrants over up to a further 13 percent of Grubhub's fully-diluted common equity, the vesting of which is subject to the satisfaction of certain performance conditions.

Starting today, Amazon Prime members in the U.S. can sign up for a free, one-year Grubhub+ membership and access unlimited $0 delivery fees from hundreds of thousands of restaurants on Grubhub throughout the year.

In addition to $0 delivery on eligible orders, Grubhub+ members get access to member-only perks and rewards.

The commercial agreement automatically renews each year unless terminated by Amazon or Grubhub in accordance with the provisions of the commercial agreement.

The gross assets of Grubhub as at 31 December 2021 were 6.52 billion euros and the loss before tax was 403 million euros.

The agreement is expected to expand membership to Grubhub+, while having a neutral impact on Grubhub's 2022 earnings and cash flow, and be earnings and cash flow accretive for Grubhub from 2023 onwards.

Just Eat said it continues to actively explore the partial or full sale of Grubhub. There can be no certainty that any agreement with any other parties regarding Grubhub will be reached or about the timing or terms of any such agreements.

In London, Just Eat shares were 1,385.40 pence, up 16.64 percent.