There’s some good GrubHub news today for investors in GRUB stock that may have been worried by one of its rivals.
The news for GrubHub (NYSE:GRUB) today that has its stock rising has to do with Amazon (NASDAQ:AMZN) shutting down its food delivery system. This is taking place in the U.S., which is an area that GRUB currently dominates.
What this means for customers is that they will only have until June 24 to make use of the service. After this, Amazon Restaurants will no longer being shipping meals to customers. This shutdown is specifically for the U.S. division of the service. The U.K. division shut down last year.
Now that it doesn’t have to deal with competition from Amazon Restaurants, GrubHub now has one less rival to deal with in the food delivery space. That’s a boon to GRUB stock today, but there are other rivals. The biggest rival for the company is likely Uber Eats, reports MarketWatch.
Here’s the official statement from Amazon, obtained from CNBC, concerning the closure of its food delivery service.
“A small fraction of Amazon employees are affected by this decision, and many of those affected have already found new roles at Amazon. Employees will be offered personalized support to find a new role within, or outside of, the company.”
GRUB stock was up 6% as of noon Tuesday. However, GRUB stock is down 14% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.