Amazon Prime members save $20 on first two Uber Eats orders

Amazon will allow Prime members to order food from Uber Eats without delivery fees on purchases of $25 or more.

The new benefit takes effect immediately across the United States. Members can place orders for hundreds of thousands of restaurants directly through Amazon.com and the retailer's shopping app.

Customers who sign up for the service receive a $20 discount on their first two qualifying orders. This introductory offer applies to any purchase of $25 or more and remains valid for the first 14 days of the partnership.

The agreement replaces Amazon's previous food delivery tie-in with Grubhub. The Grubhub benefit for Prime subscribers will end as the Uber Eats integration goes live. Prime members pay $14.99 per month or $139 per year for the subscription, which also covers free shipping on eligible items.

Andrew Macdonald, president and head of operations at Uber, said the companies built the experience so that restaurant delivery feels as natural and affordable as ordering other goods on the platform.

The move follows recent industry consolidation. DoorDash announced last month that it will pay $17 billion to acquire Instacart. That deal aims to strengthen grocery delivery capabilities in the U.S. and abroad. The combined entity plans to use Instacart's supermarket relationships to compete with new entrants in restaurant delivery.

Walmart entered the restaurant delivery market last summer by partnering with Subway. The retailer has since expanded to select locations of Dunkin' and Papa Johns. Walmart now lists 2,400 restaurant locations on its delivery platform. Greg Cathey, Walmart's senior vice president of e-commerce transformation, noted that 65% of orders placed through the Subway partnership included other Walmart items.