Why Grubhub and Amazon Took the Plunge With a Co-Branded Ad

Shoppers can find most things they need on Amazon, and some they don’t (see: tiny deck chairs and emotional support pickles). They can also order sushi, burritos, and more without delivery fees, thanks to a tie-up with takeout app Grubhub.

Since 2022, Amazon Prime’s 180 million members have had access to Grubhub+, the brand’s premium subscription offering, the main draw of which is $0 delivery costs. In May 2024, the pair introduced direct ordering via the Amazon app or website.

But according to the company’s vp, brand Marnie Kain, not enough people know about the collab. “Despite having supported this partnership through a number of channels with less focused campaigns, awareness [is] still very low,” she explained.

So, Grubhub and Amazon have unleashed “Delivery’s Other Half,” their first co-branded campaign to drive awareness.

The playful cross-channel push focuses on two characters, an Amazon delivery driver and a Grubhub courier, who bump into each other during their respective rounds. Set to the soundtrack of Raingurl by New York artist Yaeji, the spots were developed in-house by Grubhub’s 20-person creative team, with support from Amazon.

The creative drove strong awareness in effectiveness tests before it was rolled out, Kain said. It is currently running across social, digital, and audio platforms.

“We joke that this is a ‘brick on the forehead’ communication,” Kain said. “It’s meant to wake people up and make this benefit unmissable.”

Two years into the five-year tie-up, awareness might still be lacking. However, Grubhub’s data shows Prime members who are aware of the partnership hold higher positive perceptions about the brand, reporting more trust (25% lift), connection (22% lift), and consideration (14% lift).

Grubhub’s creative launch comes as it debuts its ad business, pitching ad products to its core restaurant merchants to acquire new diners and drive repeat sales. Powered by adtech firm Koddi and ecommerce business Rokt, the move into retail media will help the company vie for ad dollars against competitors Uber Eats and DoorDash, which have long had large ad businesses aimed at restaurants. 

A one-stop value shop

Per Statista, the food delivery market in the U.S. is projected to grow at a CAGR of 9.76% each year to 2029, when it will hit $562.70 billion.

With a market share of 67%, DoorDash is the dominant food delivery aggregator app. Grubhub’s partnership with Prime is designed to help it cut through in a competitive market. This latest marketing blitz follows Instacart’s collab with Uber Eats, announced in May.

Grubhub’s owner, Amsterdam-headquartered Just Eat, is currently exploring a full or partial sale of the business, owing to declining sales of 11% in North America in October.

With inflationary pressures continuing to squeeze Americans’ purse strings, Grubhub’s Amazon partnership is also about driving loyalty through savings at 375,000 restaurants. A typical Grubhub+ subscription is $120 annually, and those who place one order per month via Amazon can save up to a further $300 a year in delivery fees and promotions.

“Ultimately, people are not just looking for dollar value,” explained Kain. “Customers are looking for convenience at every turn. That’s why the ease of being able to enter through Amazon and never leave the Amazon app if you don’t want to, is just another [way] make their lives easier.”

The co-branded spot is a big step in Grubhub and Amazon’s relationship, and one that Kain doesn’t take lightly. Her advice for marketers looking to expand and reach new audiences through a collab?

“You have to start with the customer need and understand what is going to make a meaningful impact for them,” she said.

“Bringing value, service, selection, and convenience has worked for us. But this is also rooted in two like-minded brands – we each have a purpose in serving the customer. Finding a like-minded brand that wants to partner with you is critical.”