How DoorDash’s (DASH) Nationwide Kroger Expansion and Delivery Robot Are Shaping Its Investment Story

• Recently, DoorDash unveiled a major expansion of its partnership, now offering delivery from all 2,700 US Kroger stores and introducing several technology innovations including an autonomous delivery robot, new in-restaurant features, and DashMart Fulfillment Services for retailers.
• This marks a significant move to strengthen DoorDash’s position in grocery delivery and local commerce, while directly challenging competitors and broadening its use of automation and AI.
• We'll take a closer look at how DoorDash's launch of its first commercial autonomous delivery robot may reshape its long-term growth outlook.

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DoorDash Investment Narrative Recap

To be a DoorDash shareholder today, you need to believe in the long-term benefits of expansion into new verticals, automation, and international markets, while accepting that operational complexity and competitive threats are rising. The extended nationwide partnership with Kroger positions DoorDash as a major player in grocery delivery and could fuel short-term user and order growth, but persisting risks around labor costs and execution efficiency remain particularly important to watch.

Among the new announcements, the launch of DoorDash Dot, the company’s first autonomous delivery robot, stands out. This move connects directly to the catalyst of scaling AI and automation to control costs and drive operational leverage, while also introducing new variables that could affect both efficiency and margin expansion.

Yet, in contrast to these expansion efforts, rising fulfillment costs and labor uncertainties could still...

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

DoorDash's narrative projects $20.4 billion in revenue and $3.2 billion in earnings by 2028. This requires 19.6% yearly revenue growth and a $2.4 billion earnings increase from $781 million today.

Uncover how DoorDash's forecasts yield a $294.19 fair value, a 9% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community offers 11 fair value estimates for DoorDash ranging from US$189.85 to US$372.81 per share. Many expect ongoing growth from automation and delivery innovation, but the risk of rising fulfillment costs leaves plenty of room for debate. See how your view stacks up against others.

Explore 11 other fair value estimates on DoorDash - why the stock might be worth 30% less than the current price!

Build Your Own DoorDash 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 DoorDash research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free DoorDash research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DoorDash'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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