Updated at 11:03 am EST
Just East Takeaway (TKAYF)'s stock soared higher in Amsterdam trading Wednesday following Amazon's (AMZN) - Get Amazon.com Inc. Reporthas purchased warrants that could give it a 2% share in its U.S. division known as Grubhub.
If Just Eat, which purchased Grubhub last year in an all-share agreement worth $5.8 billion, sells a further 13% share to Amazon, their newly-unveiled offer, which includes free delivery for orders over $12 in the 4,000 cities that Grubhub operates, would generate enough traffic for the online retailer.
"I am incredibly excited to announce this collaboration with Amazon that will enable Grubhub to continue to deliver on our long-standing goal to connect more diners with local eateries," said Grubhub CEO Adam DeWitt. "We're confident that this feature will introduce many new diners to the value of Grubhub+ while generating more revenue to our restaurant partners and drivers."
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Just Eat Takeaway shares closed the day 11.6 percent higher in Amsterdam at 15.94 each, while Amazon shares rose by 0.33% to $113.75 each.
Following the announcement of the Amazon share in Grubhub, Uber Technologies (UBER) - Get Uber Technologies Inc. Reportshares were 4.17% lower at $21.58, while DoorDash (DASH) - Get DoorDash Inc. Class A Reportfell 9.05% to $68.12 each, as investors reduced their wagers on market share increases for the meal delivery leaders.
Uber's Delivery division, which includes market leader Uber Eats, saw revenue increase by 4% in the three months ended in March, to $2.5 billion, while DoorDash reported better-than-expected first quarter revenues of $1.5 billion, a 35% increase from last year.