Amazon is purchasing a 2% stake in Just Eat Takeaway.com's delivery service, Grubhub, and will offer the service to Amazon Prime members for a year.
Just Eat Takeaway has seen its shares dip 70% this year, with shareholders demanding it sell or find a partner for Grubhub. Just Eat had purchased Grubhub for $5.8 billion in shares last year.
As part of the agreement, Amazon customers will be offered free delivery on orders worth $12 or more in cities where Grubhub operates. The deal with Just Eat was announced as part of Amazon's July "Prime Day" promotion on Wednesday.
The deal is expected to give a lift to Grubhub as it struggles to keep up with its competitors. Grubhub has lost share to Doordash and Uber Eats.
Amazon will receive warrants representing 2% of Grubhub's shares under the deal, and another 13% of shares conditional on the arrangement it helps Grubhub attract enough customers.
"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 Takeaway said in a statement.
Just Eat said Grubhub's gross assets were worth $9.3 billion at the end of last year.
Reuters contributed to this report.