Expanded Restaurant Delivery On Prime Now A Negative Read Through For GrubHub, One Analyst Says

Amazon.com, Inc. (NASDAQ: AMZN) announced its Free Restaurant Delivery Service expansion into Manhattan and Dallas. In response to Amazon's entrance into the sector, Grubhub (NYSE: GRUB), the largest restaurant delivery service, closed down 7.83 percent to $23.30.

Axiom's Victor Anthony claimed Amazon's new initiative was a "long-term positive for Prime in that it is expected to increase retention." The analyst reaffirmed the market by saying the move was a "negative read through for the shares of GrubHub and other private food delivery services."

Despite Anthony's positive comments on Amazon, the company was trading down 2.17 percent by market close.