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Amazon Prime now delivers Uber Eats free, and DoorDash stock sinks 10%
Amazon and Uber have teamed up to put restaurant delivery inside the Prime app, and investors punished DoorDash for it.
Amazon Prime members in the U.S. can now order Uber Eats meals straight from Amazon's website or app, with no delivery fee on orders of $25 or more. The deal took effect immediately, and DoorDash shares fell about 10% on Thursday as investors weighed the new rival.
Here is how it works. You browse hundreds of thousands of restaurants inside Amazon, with no separate Uber account needed. Amazon handles payment and delivery notifications, while Uber Eats prepares and delivers the food. The free-delivery perk covers nearly 10,000 cities and towns across the country.
Amazon says frequent users could save more than $175 a year, which is more than an annual Prime membership costs. There is a catch: service fees still apply, so your total bill will not drop to just the menu price.
The partnership replaces Amazon's earlier tie-up with Grubhub, which ended the same day. For Uber, the gain is plain. It gets instant access to Amazon's huge, highly engaged Prime audience without having to win those customers one by one.
That is bad news for DoorDash, which holds a dominant share of U.S. restaurant delivery spending. Its stock was on course for its worst day in a year if the losses held, and it is down 22% so far this year.
The timing stings. Less than two weeks earlier, DoorDash agreed to buy Instacart in a deal valued at roughly $17 billion, or $65 per share, to strengthen its grocery business. That deal is expected to close in late 2027 or early 2028 and still needs regulatory review.
Retail mood cooled too. On Stocktwits, sentiment on DoorDash slipped from bullish to neutral over 24 hours, and chatter dropped from high to normal levels. For everyday diners, the takeaway is simple: the fight for your dinner order just got more competitive, and that could mean more perks.
Source: Asianet Newsable
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