Amazon partners with Uber Eats to bring restaurant delivery to Prime members

Amazon ( AMZN ) is teaming up with Uber Eats ( UBER ), allowing Prime members to order from restaurants through Amazon.com and the Amazon app, as third-party delivery gets more competitive.

Prime members who order via Amazon will get free delivery on orders of $25 or more. Customers will also get $20 off their first two Uber Eats orders of $25 or more through the first 14 days.

"This is what Prime is all about: unlimited free, fast delivery on a wide selection of products, big savings, fantastic entertainment, and now even more value on restaurant delivery with Uber Eats, all in a single membership," Jamil Ghani, worldwide vice president of Amazon Prime, said in a statement.

Uber also offers its Uber One service, which includes no delivery fees on food and groceries, as well as other benefits, for $9.99 a month, or $96 per year. Amazon Prime, which includes access to Prime Video and Amazon Music, as well as free shipping options, costs $140 a year.

Amazon has been taking share in the grocery delivery market, especially on same-day and one-hour deliveries. Earlier this week, Amazon announced that it added more than 6,000 items to its grocery options over the last six months.

But the company faces stiff competition from Walmart ( WMT ), which has created a bundle for Walmart+ and its wholesale retailer, Sam's Club Plus, for $120 a year, plus tax.

Amazon's partnership with Uber Eats also came after DoorDash ( DASH ) announced plans to acquire hyperlocal grocery-delivery provider Instacart ( CART ) in a $17 billion deal to compete in the online grocery market.

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