Amazon’s expansion of grocery delivery is not the death knell for these actions. Here is why

Even if Amazon develops further in the delivery of grocery store the same day, analysts always see the place so that Doordash and Instacart are fighting over. Amazon announced Wednesday that it would extend its delivery on perishable days the same day like meat and dairy products to more than 1,000 cities, with plans to reach at least 2,300 locations by the end of the year. The news exerted a pressure on Doordash and Instacart, which saw their shares tumble 4% and 14%, respectively, during last week. Walmart's shares, which also provides grocery delivery the same day, have lost more than 3% over the same period. But Bernstein analyst Zhihan Ma, said that the sale of Instacart and Doordash had perhaps been exaggerated because there was enough space in the segment for competitors to maintain market share. "We think that the sale in Cart and Dash (at the back of the AMZN news) was exaggerated, with room for the online penetration rates to develop and the retailers are looking more and more on the platforms," wrote my Thursday. For example, Instacart could increase its market share by reducing free delivery thresholds to bring new customers, said MA. The analyst sees third -party delivery services having the advantage of greater selection, fast and practical delivery and growing advantages related to subscription bundles. "Cart continues to have a selection advantage to the degree consumers value ordering from costco, kroger etc. and these retailers now need to lean further into the on-demand platforms to compete with amzn (we saw this post-watch foods acquisition); and cart has one of the best product Delivery Thresholds, A Wide Variety of Merchant Selection, Quick Delivery Windows (40% of Orders Are Priority), and Cost Efficiency (Optimized Network, Gig Model of the worker), "said the analyst. She echoes a similar feeling for Doordash, which she recommended to pick up after the sale. Even with hindsight, Doordash actions have advanced almost 48% so far in 2025. But MA has a price target of $ 310 for action, which suggests that shares could increase by 25% compared to the place where action closed on Friday. "Our basic thesis on the power of gains remains unchanged," she said. "We will continue to monitor the evidence of the encroachment of Amzn, but for the moment, will remain optimistic on the path to follow-fueled by the delivery of basic restoration but also on the expansion areas and the opportunity for normalized margin," she added. The opinion of MA on Doordash actions is slightly more optimistic than the average analyst, because consensual view is a potential advance of 17% for action in the next 12 months. For Instacart, analysts predict that shares could increase by around 34% on average. The price target of $ 63 of me suggests 43% from here. Instacart shares are up 6% over a year to date. Deutsche Bank analyst Lee Horowitz also expects Instacart and Doordash to remain competitive because the pair has a perception of quality and offer because customers can stick to their favorite grocery stores when using these services. "Although many remains to be seen on how this new product changes the landscape of the delivery of the grocery store, we believe that it is most likely more than the grocery delivery tart no longer cannibalizes the volume of electronic commerce in the short term," said Horowitz.