PYMNTS reported on November 8 that Amazon’s new Uber Eats offer is rattling DoorDash investors. Prime members now get free restaurant delivery on Uber Eats orders above $25 in nearly 10,000 U.S. towns and cities.
For self-employed couriers and solo restaurant owners, the deal changes where orders flow. Order volume drives gig pay, and it also drives sales for small food businesses.
What The Amazon And Uber Eats Deal Actually Does
Amazon announced the offer last week. Prime members pay no delivery fee on qualifying Uber Eats restaurant orders over $25. Coverage includes major metros such as Boston, Los Angeles, and Atlanta, as well as rural and suburban areas.
The partnership replaces an earlier Amazon tie-up with Grubhub. PYMNTS notes that Grubhub shares did not benefit from that arrangement. Uber chief operating officer and president, Andrew Macdonald, said the company is “excited to connect our restaurant community with new Prime fans.”
Why This Matters For Self-Employed Couriers And Restaurant Owners
Investors reacted quickly. The Wall Street Journal reported Sunday that, according to PYMNTS, the DoorDash sell-off looks overdone. DoorDash also announced a $17 billion deal to buy Instacart, which we covered in our look at the Instacart deal.
Free delivery for Prime members could lift Uber Eats order counts in some zones. That may mean steadier work for couriers on the app and more first-time customers for listed restaurants. It could also pull orders away from rival apps, so earnings may shift by city.
PYMNTS Intelligence adds context from its September Share of Wallet report. It estimates Walmart controls about 21% of US food and beverage spending, versus about 3% for Amazon. That gap explains why analysts keep asking how far Amazon can push into food delivery.
The WSJ also cited eMarketer data showing eCommerce makes up 15.5% of grocery sales this year. Online grocery still accounts for a minority of spending, leaving room for every platform to grow.
What Self-Employed Couriers And Owners Should Do Next
Couriers should track hourly earnings on each app for the next few weeks. A simple spreadsheet with date, app, hours, and payout will show whether Uber Eats volume is rising in your zone. Keep your accounts active on more than one platform until the data is clear.
Restaurant owners should check how their Uber Eats listing looks to Prime shoppers. Because the free delivery starts above $25, a combo or family bundle priced just over that line may help. Review your menu markups, too, so a promotion doesn’t erase your margin.
Keep clean records either way. Log your mileage, your app payouts, and any new promotion that changes your pay. Those notes make tax time easier and help you judge which platform deserves your hours.
What To Watch Next
Watch how DoorDash responds. The Wall Street Journal asks whether it can compete with Walmart and Amazon on grocery delivery after the Instacart deal. In a recent earnings call, DoorDash CEO Tony Xu said that grocery delivery is “just a fraction of what its potential could be,” per PYMNTS.
Also watch for new Prime-tied perks in your area. Couriers and owners should expect more bundled promotions as the three-way race heats up. If the Prime offer works, rivals will likely respond with their own deals, and independent workers will feel those changes first.
Photo by Andrew Stickelman
