Deutsche expects continued leadership for DoorDash despite Uber/Instacart tie-up

Following the news that Uber (UBER) and Instacart (CART) are partnering up to bring UberEats’ restaurant supply to the Instacart platform, Deutsche Bank analyst Lee Horowitz provided thoughts on what this may mean from the perspective of DoorDash (DASH). While “incrementally negative to DoorDash’s core business,” the firm believes that the ultimate orders at risk via this partnership are at most 4% and 7% of Street 2024 and 2025 estimates, respectively. However, the firm adds that it “more reasonably” believes that the total orders at risk for DoorDash are between 2%-4% of 24/25 orders estimates and if one assumes that DoorDash successfully holds on to some percentage of these orders, the potential share loss implications are “even lower.” The firm, which is expecting “continued market leadership” for DoorDash despite this Uber and Instacart tie-up, has a Buy rating and $155 price target on DoorDash shares.