DoorDash Shares Drop 10% as Amazon Integrates Uber Eats Into Prime

Shares of DoorDash dropped 10% on Thursday following an agreement between Amazon and Uber Technologies that integrates Uber Eats directly into Amazon’s storefront, offering Prime subscribers zero-dollar delivery on eligible restaurant orders, according to reporting distributed via Yahoo Finance (https://stocktwits.com/news-articles/markets/equity/amazon-uber-eats-deal-sends-dash-stock-to-biggest-drop-in-a-year/cNG1MHxR94F?.tsrc=rss).

The commercial arrangement went into effect immediately and covers nearly 10,000 cities and towns across the United States. Under the terms, Amazon Prime members can browse menus and purchase from hundreds of thousands of restaurants directly on Amazon’s website and mobile app without opening a separate Uber account. Amazon processes payments and issues delivery notifications, while Uber Eats manages order fulfillment.

Free delivery applies to restaurant orders totaling $25 or more, though standard service fees continue to apply. Amazon estimated that frequent diners could save more than $175 annually, an amount that surpasses the yearly cost of a standard Prime subscription. The arrangement formally replaces Amazon's previous food delivery partnership with Grubhub, which concluded the same day.

The tie-up introduces direct competitive pressure on DoorDash, which commands the largest single share of U.S. restaurant delivery spending. Thursday's drop put DoorDash shares on pace for their steepest single-day decline in a year, extending the company's year-to-date loss to 22%.

The market reaction follows another major consolidation move in the delivery sector. Less than two weeks prior, DoorDash agreed to acquire grocery delivery platform Instacart in a transaction valued at roughly $17 billion, or $65 per share. That acquisition, aimed at expanding DoorDash's presence across local grocery commerce, is expected to close in late 2027 or early 2028, subject to regulatory approvals.