DoorDash plunges as Amazon-Uber Eats deal adds competitive pressure, analysts say
DASH•DoorDash shares fell 14% after Amazon announced a partnership with Uber Eats, offering Prime members free delivery and $20 off their first two qualifying orders. Analysts said the deal added competitive pressure as the market also responded lukewarmly to DoorDash’s Lyft partnership.
1. Shares fall after deal
DoorDash shares fell 14% after Amazon announced that Prime members would receive $0 delivery and $20 off their first two orders of $25 or more through Uber Eats. DoorDash announced a partnership with Lyft on Thursday for in-ride ordering; eMarketer analyst Zak Stambor said the market appeared to react to both announcements, including a lukewarm response to DoorDash’s deal.
2. Competition and acquisition
eMarketer analysts said DoorDash’s planned $17 billion acquisition of Instacart was a big move, but that it would be hard to compete with two giants joining forces. DoorDash shares were up 17.3% since before the acquisition was announced, as of the previous close.
