Amazon is shutting down its restaurant delivery service this month as competitors like Grubhub, Uber and DoorDash continue to dominate the market.
Amazon said it will end its Amazon Restaurants business in the U.S. on June 24, as first reported by GeekWire. The company said it will also shutter Daily Dish, a workplace lunch delivery feature it launched three years ago.
The news sent Chicago-based Grubhub's stock up more than 7 percent Tuesday. In its last quarterly earnings report, Grubhub posted revenues of $324 million, which was up nearly 40 percent from the year prior.
First launched in 2015, Amazon Restaurants was the company's food delivery service where Prime members could order from nearby restaurants. Amazon shut down the service in London in November.
The shut down of Amazon Restaurants comes a month after the e-commerce giant led a $575 million round in London-based food delivery startup Deliveroo. So while Amazon may be exiting restaurant delivery for now, it's likely we haven't seen the last of the company's food delivery efforts. It still provides grocery delivery via Whole Foods.
Meanwhile, industry leaders Grubhub, Uber Eats and DoorDash together make up 75 percent of the market. DoorDash has spent heavily to acquire customers, having raised $2 billion in venture capital since it launched in 2013. Its market share---in terms of orders---has doubled over the last year and it has pulled ahead of Grubhub and Uber in terms of total dollars spent on its platform.
Uber Eats is one of Uber's fastest-growing businesses, bringing in $536 million in revenue during the first quarter of 2019.
