GrubHub shares jump; Amazon shuts down its restaurant delivery service

Amazon Restaurants delivery service

Source: Amazon Prime Now

Shares of online food delivery services GrubHub and Waitr Holdings jumped Tuesday after Amazon said it was shutting down its four-year-old rival service, which delivered restaurant meals to Prime members’ doorsteps.  

GrubHub shares, which have a market value of $6.3 billion, gained more than 7% on Tuesday, while shares of smaller rival Waitr gained 3%. Waitr has a market cap of $482.7 million. Uber, which operates Uber Eats, saw its stock, which is valued at $71.5 billion, rise less than 1%. 

Amazon said Monday that it shuttering Amazon Restaurants on June 24. The service had operated in more than 20 U.S. cities. An expansion into the U.K. was closed late last year. 

“A small fraction of Amazon employees are affected by this decision, and many of those affected have already found new roles at Amazon,” the company said in a statement. “Employees will be offered personalized support to find a new role within, or outside of, the company.”

News of that Amazon was closing the service was first reported by GeekWire.