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Starting October 1, 2025, DoorDash (DASH) will offer full grocery delivery from nearly 2,700 Kroger (KR) -owned stores across the U.S., marking a significant expansion from its previous offerings of sushi, flowers, and prepared meals from select locations. The expanded partnership with KR is expected to positively impact DoorDash's financial metrics.

• The addition of KR's extensive grocery selection is likely to drive significant increases in Gross Order Volume (GOV). DASH previously guided for 3Q25 GOV of $24.2-$24.7 bln. With a broader product offering, DASH also anticipates a rise in the number of orders processed.
• The expansion is expected to contribute to improved adjusted EBITDA margins, following the trend observed in 2Q25, where adjusted EBITDA as a percentage of Marketplace GOV increased to 2.7% from 2.2% in the previous year.
• Grocery delivery has become a significant component of DASH's operations. While the company does not break out specific revenue or GOV figures for the grocery category in its quarterly reports, it has consistently highlighted grocery as a key growth driver.
• Instacart (CART) is selling off sharply following the announcement, reflecting investor concern over increased competition in the grocery delivery sector. The expanded partnership between DASH and KR could potentially erode CART's market share, especially as KR continues to collaborate with multiple delivery platforms.

Briefing.com Insight:

DASH’s expanded partnership with KR marks a major step in growing its grocery delivery business, making full store assortments available at nearly 2,700 locations starting October 1. This expansion is likely to increase gross order volume, total orders, and adjusted EBITDA, while intensifying competition for CART and other grocery delivery platforms. Grocery delivery is already a growing component of DASH’s overall business, and this partnership underscores the company’s strategy to diversify beyond restaurant delivery and capture a larger share of the broader grocery market.