DoorDash (DASH) is likely to maintain its market leadership in the face of the collaboration between Uber Technologies’ (UBER) Uber Eats and Instacart (CART), Deutsche Bank said Wednesday in a note.
Uber Eats and Instacart on Tuesday announced they are integrating UberEats’ restaurant offerings into the Instacart platform. While this may pose some challenges to DoorDash’s primary operations, “we believe that the ultimate orders at risk via this partnership is at most” 4% to 7% of Wall Street’s 2024 and 2025 estimates,” Deutsche Bank said.
“If we assume that DoorDash successfully holds on to some percentage of these orders, the potential share loss implications are even lower,” Deutsche Bank said.
Deutsche Bank has a buy rating on DoorDash with a price target of $155.
DoorDash shares fell 3.7% in recent trading Wednesday. Uber slumped 8.5% after posting a surprise Q1 loss, and Instacart dropped 1.9%.