Amazon takes stake in Just Eat Takeaway's Grubhub

Under the agreement, which automatically renews each year unless terminated by one of the parties, Amazon will receive warrants over 2% of Grubhub's fully-diluted common equity.

It will also receive warrants - exercisable at a formula-based price - over up to a further 13% of Grubhub's fully-diluted common equity. Vesting is subject performance conditions, mainly the number of new consumers delivered through the deal.

"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.

it added that it continued to actively explore the partial or full sale of Grubhub which has struggled to deliver for Just Eat, whose shares have fallen 70% this year as shareholders demanded it sell or find a partner for the US business, which it bought just last year for $5.8bn.

“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 agreement(s),” it added.

Reporting by Frank Prenesti at Sharecast.com