Amazon Picks Uber Eats as New Prime Food Delivery Partner, Dropping Grubhub

AMZN has picked Uber Eats as the official restaurant delivery partner for U.S. Prime members, replacing Grubhub, whose arrangement with Amazon ended on Thursday, November 5, a Grubhub spokesperson confirmed. Prime members can now order restaurant delivery directly through Amazon.com or the Amazon Shopping app without creating a separate Uber account, and they pay no delivery fee on orders over $25. Service fees, taxes and tips can still apply.

Amazon is easing the transition for existing customers: members who already have Grubhub+ through Prime keep it through December 31, 2027. A launch promotion gives $20 off each of the first two orders of $25 or more during the first two weeks.

The market read the deal as a competitive blow to the rest of the delivery field more than a windfall for UBER. DASH slumped 10% on Thursday after the announcement, according to Stocktwits coverage carried by Yahoo Finance. Uber itself traded down 1.6% on Thursday, a move MarketBeat tied to an analyst downgrade, and the stock is down 16% year to date. Uber had reported third-quarter results a day earlier, so its daily moves are hard to pin on any single headline.

What to watch: whether Uber discloses any order-volume lift from the Prime channel in coming quarters, how DoorDash responds on pricing or partnerships, and where Grubhub finds replacement distribution after losing Amazon's Prime audience.