Uber Technologies Inc (NYSE:UBER) 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.
Uber is a technology provider that matches riders with drivers, hungry people with restaurants and food delivery service providers and shippers with carriers.
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UBER Price Action: Uber has traded between $52.03 and $19.89 over a 52-week period.
The stock was down 3.33% at $21.77 at press time, according to data from Benzinga Pro.
Photo: courtesy of Uber.
