DoorDash (DASH) is making its biggest push yet into grocery delivery through an expanded partnership with Kroger (KR), while Instacart (CART) works to strengthen its role in retail execution. The moves highlight how competition in online grocery is heating up — and investors are taking notice.
Key Points
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DoorDash adds Kroger’s full grocery lineup: Starting October 1, nearly 2,700 Kroger-owned stores will be available on the DoorDash app.
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Instacart under pressure: Shares of CART dropped after the announcement, with analysts warning of market share risk.
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Instacart pivots toward CPG partnerships: A new tie-up with Advantage Solutions aims to improve in-store execution for consumer brands.
Why is DoorDash teaming up with Kroger?
DoorDash is expanding its partnership with Kroger to include grocery delivery from almost 2,700 stores across the U.S. Until now, the collaboration was limited to sushi and flowers at select locations. Starting October 1, shoppers will be able to order Kroger’s full assortment of fresh food, household essentials, and pantry staples directly through the DoorDash platform.
This is a significant milestone for DoorDash. With 42 million monthly active users, the company has built dominance in restaurant delivery, but grocery is emerging as a new growth engine. DoorDash expects the expansion to lift gross order volume (GOV), which it had guided at $24.2 to $24.7 billion for Q3. A higher number of orders and improved adjusted EBITDA margins — 2.7% last quarter versus 2.2% a year earlier — could follow.
How does this impact Instacart?
Instacart has been the dominant player in U.S. grocery delivery, but the competitive landscape is shifting. Analysts at Wedbush estimate Kroger accounts for more than 10% of Instacart’s gross transaction value. Losing exclusive ground to DoorDash could hurt Instacart’s perceived position as Kroger’s preferred partner.
The stock reaction was swift: CART shares fell more than 6% on the news. Analysts warned that Instacart’s market share, once around 70% in 2022, has already slipped to about 58%, with DoorDash and Uber Eats gaining traction.
What is Instacart doing to defend its position?
While DoorDash scales its grocery network, Instacart is doubling down on partnerships that play to its technology strengths. A new collaboration with Advantage Solutions will help consumer packaged goods (CPG) companies improve in-store execution.
Here’s how it works: Instacart’s 600,000 shoppers can perform audits on shelf availability, pricing, and product displays. Those insights trigger real-time alerts to Advantage’s field teams, who then take corrective action in stores. The goal is to reduce stockouts, improve compliance, and boost brand performance.
This builds on Instacart’s recent innovations, such as AI-powered Caper Carts with EBT SNAP tracking and the Consumer Insights Portal, which gives brands real-time access to shopping data.
What it means for investors
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DASH: The Kroger expansion reinforces DoorDash’s strategy to diversify beyond restaurants. If execution is strong, it could drive sustained GOV and margin improvement.
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CART: Competitive pressures are intensifying. While Instacart’s Advantage Solutions partnership highlights its tech edge, investors may worry about lost share in core grocery delivery.
Conclusion
The grocery delivery race is entering a new phase. DoorDash is gaining scale by locking in the nation’s largest grocer, while Instacart is shifting focus toward tech-driven solutions for brands and retailers. For investors, the battle lines are clear: DoorDash is chasing volume growth, Instacart is betting on data and partnerships.
FAQs
Is DoorDash delivering groceries from Kroger now?
Yes. Starting October 1, DoorDash will deliver from nearly 2,700 Kroger-owned stores across the U.S., making Kroger the largest grocer on the app. This expands beyond sushi and flowers previously offered.
How does DoorDash’s expansion affect Instacart?
It puts pressure on Instacart’s market share. Analysts note Kroger accounts for over 10% of Instacart’s transaction value, so the expanded DoorDash partnership could chip away at CART’s growth.
What is Instacart doing to stay competitive?
Instacart is focusing on partnerships and technology. Its new deal with Advantage Solutions uses Instacart shoppers to provide real-time shelf data, allowing brands to act quickly on inventory gaps and display compliance.
Which stock is the better investment right now: DASH or CART?
DoorDash appears positioned for near-term growth with Kroger’s full integration, but Instacart is pivoting toward higher-margin tech solutions. The choice depends on whether investors favor scale-driven growth or technology-led services.
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