DoorDash Inc (NYSE:DASH) shares are trading lower Wednesday after Amazon.com Inc (NASDAQ:AMZN) acquired a 2% stake in competitor company Grubhub.
Amazon will receive warrants over 2% of Grubhub’s fully-diluted common equity. Amazon will also receive warrants over up to a further 13% of Grubhub’s fully-diluted common equity, subject to certain performance conditions, principally the number of new consumers delivered through the commercial agreement.
As part of the agreement, Amazon Prime members in the United States can sign up for a free, one-year Grubhub+ membership and access unlimited $0 delivery fees from restaurants on Grubhub throughout the year.
DoorDash is an online food order demand aggregator. Consumers can use its app to order food on-demand for pickup or delivery from merchants mainly in the U.S.
See Also: Highlights From Amazon-Just Eat Takeaway.com Collaboration
DASH Price Action: DoorDash has traded between $257.24 and $56.67 over a 52-week period.
The stock was down 8.28% at $68.70 at press time, according to data from Benzinga Pro.
Photo: GoToVan from Flickr.
