The news: Amazon is ending its Grubhub+ partnership on November 5 and teaming up with Uber Eats to offer Prime members no delivery fees on restaurant orders of $25 or more placed through the retailer's website or shopping app.

To encourage trial, Amazon is offering $20 off each of members' first two orders of $25 or more. Prime Visa cardmembers can also earn 5% back on eligible orders through December 5.

Amazon cited Uber Eats' broader restaurant selection, including chains such as Chipotle and Sweetgreen, and the ability to provide a more seamless ordering experience within its own platform as key reasons for the switch.

How it works: Prime members can access the Uber Eats-powered benefit through Amazon's website or by searching "Uber Eats" in the Amazon Shopping app.

• Customers can browse nearby restaurants, place orders, and pay using their existing Amazon payment methods, including gift cards, without leaving Amazon or creating an Uber Eats account.
• Uber Eats provides the restaurant selection and delivery network, while Amazon handles the ordering experience, payments, and customer service.

Implications for retail: The more consumers use their Prime benefits, the more likely they are to concentrate their spending on Amazon. That's why the company is constantly looking for ways to make its membership more valuable.

The Uber Eats partnership also allows Amazon to expand Prime's value without building its own restaurant delivery network. By relying on Uber Eats for restaurant selection and fulfillment while keeping the ordering experience within its own platform, Amazon can maintain control of the customer relationship and ensure shoppers associate the benefit with Prime.

That gives members another reason to open Amazon's app, reinforces the value of their membership, and creates more opportunities for Amazon to capture their spending.