DoorDash shares fell 9.4% on Thursday after Amazon gave Prime members free Uber Eats delivery, which left the stock 3% below where it traded before news of its $17 billion Instacart deal leaked. WSJ Heard on the Street columnist Jinjoo Lee argues the selloff is overdone, because Uber Eats is only replacing Grubhub, which didn’t gain market share from the Prime perk. Lee sees grocery as the bigger test, where a combined DoorDash and Instacart would hold 19% of US online sales, behind Amazon at 40% and Walmart at 27%, per Emarketer. DoorDash CEO Tony Xu has said its own dark stores fill orders with near-perfect accuracy, but DoorDash hasn’t given a count of its dark stores. Price will be harder, Lee writes, because Amazon and Walmart can fund discounts with their ad businesses.
