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DoorDash, Uber stocks fall after Amazon inks partnership with Grubhub

Shares of DoorDash Inc. (DASH) and Uber Technologies Inc. (UBER) are falling in premarket trading Wednesday after Amazon.com Inc. (AMZN) struck a partnership with Grubhub, a unit of Just Eat Takeaway.com NV . Through the arrangement, Amazon will make Grubhub a benefit to Prime members and offer members the chance to get delivery fees waived from certain restaurants, according to The Wall Street Journal. Additionally, Amazon has an opportunity to take an initial 2% stake in Grubhub, and it could boost that stake to 15% if it hits targets around user acquisition. Just Eat shares are up more than 19% in Wednesday trading in the Netherlands, while shares of U.S.-based food delivery companies are falling premarket. Shares of DoorDash are down more than 7% and shares of Uber, which operates the Uber Eats delivery service, are off more than 3%. Just Eat still intends to look into a potential full or partial sale of Grubhub, per the Wall Street Journal report.

-Emily Bary

 

(END) Dow Jones Newswires

07-06-22 0859ET

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