Just when you thought online grocery delivery news had peaked this month, Amazon.com and Uber have entered the ring, escalating the food delivery war.
Amazon's U.S. Prime members can now order restaurant delivery directly through Amazon.com or its app -- powered by Uber Eats -- with no separate account or download required, the companies announced Thursday. The rollout spans nearly 10,000 U.S. cities and towns, covering hundreds of thousands of restaurants.
The perks? Food orders of $25 or more can get a $0 delivery fee, alongside promotions that could save members over $175 a year.
As part of an introductory deal, Prime members can get $20 off their first two orders of $25 or more within their first two weeks. Prime Visa cardholders can also earn 5% back on Uber Eats orders through Dec. 5, 2026.
The new collaboration landed right after DoorDash shook the food delivery sector last week with its $17 billion deal to acquire Instacart, a longtime leader in the online grocery delivery space.
Investors cheered Thursday's news. Uber stock advanced 3.4% to $72.29 in premarket trading. Shares of Amazon, meanwhile, rose 1.7% to $270.49 and were heading for their highest closing level since Aug. 11, according to Dow Jones Market Data. DoorDash stock dropped 2.3% in premarket trading after closing up 8.3% in the prior session.
Uber's stock gain Thursday extended momentum from Wednesday, when it reported better-than-expected third-quarter earnings, thanks to its fast-growing delivery business. Shares closed up 4.9% to $69.87 in the previous session.
With blockbuster buyouts and tech giants teaming up, it's clear this doesn't represent just a simple interest in the food delivery space. The race for delivery to people's doorsteps has begun to heat up.
Comments