Amazon-Uber Eats Deal Sends DASH Stock To Biggest Drop In A Year

• Amazon estimates frequent users could save more than $175 a year, a figure that exceeds the cost of an annual Prime membership.
• The partnership hands Uber Eats immediate reach into Amazon’s large, high-engagement Prime base, raising competition for DoorDash. 
• DoorDash agreed to acquire Instacart (CART) in a deal valued at roughly $17 billion, or $65 per share last month.

Shares of DoorDash (DASH) slumped 10% on Thursday after rivals Amazon (AMZN) and Uber Technologies (UBER) struck a partnership giving Amazon Prime members free delivery on Uber Eats restaurant orders of $25 or more when placed directly through Amazon’s website or app.

Under the arrangement, which took effect immediately, Prime subscribers can browse and order from hundreds of thousands of restaurants without creating a separate Uber account or leaving the Amazon platform. Amazon handles payment and delivery notifications, while Uber Eats fulfills the orders. The $0 delivery fee applies U.S.-wide, across nearly 10,000 cities and towns.

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The deal replaces Amazon’s previous partnership with Grubhub, which ended the same day. Amazon estimates frequent users could save more than $175 a year, a figure that exceeds the cost of an annual Prime membership, though service fees still apply.

The partnership hands Uber Eats immediate reach into Amazon’s large, high-engagement Prime base, raising competition for DoorDash which commands a dominant share of U.S. restaurant delivery spending. DASH stock is no on track for its worst day in a year, if the losses hold.

The sell-off on Thursday comes less than two weeks after DoorDash agreed to acquire Instacart (CART) in a deal valued at roughly $17 billion, or $65 per share. The combination is intended to strengthen DoorDash’s position in grocery and expand its local commerce platform. The transaction, expected to close in late 2027 or early 2028, remains subject to regulatory review.

How Did DASH Retail Traders React?

On Stocktwits, retail sentiment around DASH stock fell from 'bullish' to 'neutral' territory over the past 24 hours, while message volume skidded from 'high' to 'normal' levels.

DASH stock has dropped 22% year-to-date. 

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