Shares of DoorDash (NASDAQ:DASH) dropped over 3% premarket Tuesday after Instacart (NASDAQ:CART) and Uber (NYSE:UBER) announced a strategic partnership.
The partnership will bring Uber Eats restaurant delivery to Instacart customers. Instacart customers will be able to use the Instacart app to order from restaurants powered by Uber Eats.
According to Instacart, the experience will be featured in a new "Restaurants" tab in the Instacart app. Restaurant orders via the Instacart app will be fulfilled by Uber Eats and couriers on its platform.
Dara Khosrowshahi, CEO of Uber, said: "We're excited that this new strategic partnership with Instacart will bring the magic of Uber Eats to even more consumers, drive more business for restaurants, and create more earnings opportunities for couriers."
Fidji Simo, the CEO and Chair of Instacart, stated: "Through this partnership, Instacart customers now have access to both the best online grocery selection in the U.S. and restaurant delivery, making it even easier for them to conveniently tackle all their food needs from a single app."