11:00 AM EDT, 09/29/2025 (MT Newswires) -- Instacart's (CART) position as a delivery intermediary will be directly challenged by the expansion of the partnership of DoorDash ( DASH ) and Kroger ( KR ) , Wedbush said in a Monday note.

Instacart is at risk of losing incremental market share to other leading intermediaries that can leverage their scale and success in adjacent categories, Wedbush analysts said, noting that they downgraded the company's stock in August to underperform from neutral based on increasing competitive pressure.

While Instacart derives more than 10% of its gross transaction value from Kroger ( KR ) and its platform still powers the supermarket chain's same-day delivery service, the DoorDash ( DASH ) announcement shows that Instacart may be losing its status as a preferred partner, the analysts said.

Instacart's grocery delivery share among intermediaries has been falling, from accounting for around 70% of grocery delivery sales volume in 2022 to around 58% in 2024, the analysts said.

Wedbush's rating on the company's stock is underperform with a price target of $42.

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