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

• In recent days, Instacart parent Maplebear faced heightened competitive pressures as supermarket giant Kroger expanded its delivery partnership with DoorDash to nearly 2,700 locations, challenging Instacart's status as a key intermediary and prompting concerns about its business model.
• This development, announced by Kroger and DoorDash, has led to reassessment of Instacart's growth outlook, especially as several major grocers have begun to partner with other delivery platforms such as Amazon and Uber.
• We'll explore how Kroger's expanded alliance with DoorDash, affecting a crucial Instacart client, could alter the company's investment narrative.

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Maplebear Investment Narrative Recap

To be a shareholder in Maplebear (Instacart), you need to believe in the sustained migration of grocery shopping to digital channels and the company’s ability to deepen its ties with major retailers amid growing competition. The recent expansion of Kroger’s DoorDash partnership highlights the most immediate risk: large retail clients pursuing alternatives, which could quickly affect order volumes and future growth outlooks, making short-term client retention and margin stability critical areas to watch.

Of the latest announcements, the joint effort between Instacart and Advantage Solutions stands out for its relevance in addressing retailer needs. By integrating Instacart’s audit technology and 600,000-strong shopper community with Advantage’s field services, this collaboration could help strengthen retention and value-add for key accounts, timely as retailer loyalty shows signs of wavering.

However, even as Instacart pushes innovation and partnerships, many investors may not fully appreciate how key account renegotiations and partner diversification...

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

Simply Wall St Community members estimate fair value for Instacart shares from US$46.47 to US$161.63 across three individual forecasts. While opinions vary widely, many focus on the ongoing risk from retailers seeking alternatives, which could influence the company's ability to defend revenue and earnings growth. Explore these perspectives to see how your own view compares.

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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