Why Maplebear (CART) Is Down 7.3% After Kroger Expands DoorDash Delivery Partnership

• In the past week, Instacart parent Maplebear faced heightened competitive pressure after Kroger announced a significant expansion of its delivery partnership with DoorDash, making almost 2,700 Kroger locations available on the rival platform and collaborating on new media initiatives.
• This development marks a shift in the grocery delivery landscape, as multiple major grocers representing a significant portion of Instacart’s transaction value have recently partnered with competitors, raising questions about Instacart's future market position.
• We'll now look at how rising competition from key retail partnerships may affect Instacart's long-term growth and business outlook.

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Maplebear Investment Narrative Recap

To be a shareholder in Maplebear (Instacart), you need to believe in ongoing digital adoption in grocery shopping, Instacart’s differentiated technology, and its ability to hold key retailer partnerships. The recent Kroger-DoorDash news directly impacts the company’s most important short-term catalyst: maintaining order volume from major grocers. This partnership loss signals that competitive risk, particularly from retailer partner defections, is also the biggest near-term threat to stability and growth, with market reactions already reflecting these concerns.

In the context of this competitive challenge, Instacart’s launch of its Consumer Insights Portal stands out. By giving brands direct, real-time access to transaction-level data, Instacart is strengthening enterprise relationships and providing retailers and CPG partners with tools that deepen integration. This tech-driven value proposition could help offset risks from retailer defections but does not fully mitigate the pressures associated with major grocer partnerships.

However, investors should be aware of the competitive risk tied to Instacart’s reliance on relationships with leading grocers, especially when...

Read the full narrative on Maplebear (it's free!)

Maplebear's narrative projects $4.6 billion revenue and $779.9 million earnings by 2028. This requires 9.3% yearly revenue growth and a $300.9 million earnings increase from $479.0 million today.

Uncover how Maplebear's forecasts yield a $58.72 fair value, a 49% upside to its current price.

Exploring Other Perspectives

Fair value estimates for Maplebear from 3 Simply Wall St Community members run from US$46.47 to a high of US$161.63. With such wide-ranging views, keep in mind that emerging partner shifts in the grocery space could shape both short-term performance and long-term expectations in ways that many may not anticipate.

Explore 3 other fair value estimates on Maplebear - why the stock might be worth over 4x more than the current price!

Build Your Own Maplebear Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Maplebear research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Maplebear research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Maplebear's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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