DoorDash Shareholders Aren’t Convinced the Company Can Take On Amazon

A facts-only brief, written by a local AI model from this article in The Wall Street Journal, November 8, 2026. It may contain mistakes, and it is not the article: the full story is at wsj.com.

DoorDash shares fell 9.4% on Thursday after Amazon announced a partnership with Uber Eats, which grants Prime members free restaurant delivery on orders over $25. This move followed DoorDash’s late-month announcement to acquire Instacart for $17 billion, a deal that values the grocery platform at a 26% premium to pre-deal rumors. The combined entity would hold a 19% share of U.S. online grocery sales, according to Emarketer data, while Amazon and Walmart hold 40% and 27% respectively. DoorDash Chief Executive Tony Xu stated that grocery delivery has significant untapped potential because consumers currently pay premiums for imperfect service, citing near 100% accuracy rates for deliveries from the company’s own DashMarts compared to low-90s accuracy for third-party stores.

Background

• DoorDash’s capital expenditures last year were approximately 4% of what Walmart U.S. spent on supply chain and technology initiatives.
• Instacart delivers from nearly 100,000 stores across North America, whereas Walmart operates 5,618 stores in the U.S. and Canada.
• The acquisition faces regulatory uncertainty, reflected in an 11% discount on Instacart’s offer price, though the current Federal Trade Commission is viewed as more deal-friendly than the agency that blocked the Kroger-Albertsons merger.
• Evercore equity analyst Mark Mahaney noted that DoorDash successfully doubled the growth rate of Deliveroo, its U.K. acquisition, in the third quarter compared to pre-acquisition levels.

Read the full article at wsj.com

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