Wells sees no major share changes as Kroger expands 3P grocery to DoorDash

Wells Fargo notes that DoorDash (DASH) and Kroger (KR) have expanded their partnership to include full grocery offering, including fresh foods, adding a third demand channel for Kroger groceries. Loss of grocery 3p exclusivity has not historically led to major share changes, so the firm doesn’t see as this primary take from the DoorDash partnership. Instead, Wells believes any signaling around Kroger’s evolving partnership with Ocado is far more important. With that said, the firm points out it believes Kroger is a top 2 customer of Instacart (CART), accounting for 10%-15% of revenues, continuing trend of grocery exclusives rolling off.