DoorDash faces a fresh competitive challenge after Amazon added free Uber Eats delivery for Prime members. The move came as the delivery market was already weighing DoorDash’s planned acquisition of Instacart, making scale, pricing and grocery execution central issues for shareholders.
According to Shopifreaks, DoorDash shares fell 9.4 percent on Thursday, November 5, after Amazon announced the Prime benefit. The report said the move left DoorDash about 3 percent below the level at which the stock traded before news of the Instacart deal emerged. The figures describe a past market move rather than the current Lang & Schwarz quotation.
Amazon raises the delivery stakes
The immediate question is whether the Amazon-Uber Eats arrangement can change consumer behavior. Shopifreaks cited Wall Street Journal Heard on the Street columnist Jinjoo Lee, who argued that the sell-off may be excessive because Uber Eats is replacing Grubhub, which had not gained market share from the Prime…