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…