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

This morning,

announced its Free Restaurant Delivery Service expansion into Manhattan and Dallas. In response to Amazon's entrance into the sector,

, the largest restaurant delivery service, was trading down over 7.83% by market close. 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 Victor Anthony's positive comments on Amazon, the company was trading down 2.17% by market close today.