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Amazon-Uber Eats Deal Leaves DoorDash Investors Queasy

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Amazon-Uber Eats Deal Leaves DoorDash Investors Queasy

Amazon’s newly launched partnership with Uber Eats has reportedly left DoorDash investors feeling uneasy.

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Amazon announced last week that Prime members can get free Uber Eats restaurant delivery on orders of more than $25. That triggered a sell-off in DoorDash shares, The Wall Street Journal (WSJ) reported Sunday (Nov. 8), calling the reaction “overdone.”

The report argued that the Uber Eats partnership would just be replacing an earlier collaboration with Grubhub, which didn’t see a boost in share price by teaming with Amazon.

The new Amazon-Uber Eats partnership is available in nearly 10,000 cities and towns in the U.S., including metro areas like Atlanta, Boston and Los Angeles, as well as rural and suburban areas.

“Together with Amazon, we built an experience for Prime members designed to make restaurant delivery feel as natural, convenient, and affordable as ordering anything else on Uber Eats,” said Andrew Macdonald, president and chief operating officer of Uber.

“We’re excited to connect our restaurant community with new Prime fans, while giving Prime members a seamless way to enjoy great food from restaurants through Uber Eats.”

The bigger question around the new partnership, WSJ added, is whether DoorDash’s recently announced $17 billion acquisition of Instacart lets it compete effectively with Amazon and Walmart on grocery delivery. 5% of grocery sales this year.



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