DoorDash Expands into Grocery Delivery Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy DASH?
Source: NASDAQ.COM
- Market Share Growth: DoorDash dominates the U.S. restaurant delivery market, with Q4 2023 orders rising 32% year-over-year to 903 million, and marketplace gross order value soaring 39% to $29.7 billion, demonstrating its ability to expand in a highly competitive environment.
- Profitability Inflection Point: DoorDash expects its grocery and retail delivery business to achieve positive unit economics in the second half of 2023, indicating a successful transition to profitability despite the complexity of grocery orders compared to restaurant orders.
- Customer Diversification: CEO Tony Xu noted that approximately 30% of customers are now ordering outside the restaurant category, reflecting the company's progress in expanding its customer base and market penetration, with a future goal of 100% of customers ordering outside the restaurant category.
- Intensifying Competitive Pressure: While DoorDash is making strides in the grocery delivery market, it faces fierce competition from rivals like Instacart and Amazon, with Instacart's market share dropping from 70% in 2023 to 58%, suggesting that DoorDash's success could significantly accelerate its revenue growth.
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Analyst Views on DASH
Wall Street analysts forecast DASH stock price to rise
21 Analyst Rating
18 Buy
3 Hold
0 Sell
Strong Buy
Current: 176.410
Low
224.00
Averages
278.67
High
330.00
Current: 176.410
Low
224.00
Averages
278.67
High
330.00
About DASH
DoorDash, Inc. is engaged in providing services that reduce friction in local commerce and help merchants connect with consumers in their communities. The Company's primary offerings include the DoorDash Marketplace and the Wolt Marketplace (together, the Marketplaces), and its Commerce Platform. The Company's Marketplaces operate in over 30 countries across the globe and provide an integrated suite of services that help merchants establish an online presence, connect with consumers in their communities, and solve mission-critical challenges, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers advertising as a value-added service through its Marketplaces to help merchants and consumer packaged goods companies increase consumer engagement. The Company also has offsite advertising capabilities. Its white-label delivery fulfillment services include DoorDash Drive On-Demand and Wolt Drive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Analyst Optimism: Analysts predict a 45% upside for DoorDash's stock, with 36 analysts rating it as either a strong buy or buy, indicating a positive outlook on its international business and grocery delivery growth potential.
- Strategic Importance of Deliveroo Investment: While the investment in Deliveroo is seen as a short-term burden, analysts believe it opens significant opportunities for DoorDash's international expansion in Europe, particularly in automation and new product development.
- Competitive Advantage: Xu emphasized DoorDash's edge in offering diverse choices, arguing that even with Amazon's competition, the ability to provide options from multiple independent retailers will sustain growth, and analysts are optimistic about its potential in restaurant reservations and personalized recommendations.
See More
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- Worker Rights Issues: Despite a 2020 Supreme Court ruling affirming that delivery riders should have employee rights, conditions have reportedly worsened over six years, with many riders living below the poverty line and facing homelessness, highlighting widespread exploitation in the industry.
- Immigrant Worker Dilemma: The inquiry revealed that many delivery riders are undocumented immigrants working up to 17 hours a day without basic labor protections, underscoring severe social issues within Italy's food delivery sector.
- Slow Industry Response: Although Glovo and Deliveroo claim they will cooperate with the investigation and provide relevant data, ongoing legal challenges persist, with similar cases emerging in other European countries, indicating that the food delivery industry is struggling to effectively address these legal issues.
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