Instacart Downgraded to Neutral by BTIG Amid Competitive Pressures.

BTIG downgraded Instacart to Neutral from Buy and withdrew its $55 price target, citing competitive losses as partners representing 25% of Instacart's business shifted to Amazon, DoorDash, and Uber. The firm noted that Instacart's reliance on third-party delivery drivers and lack of control over pricing and margins are major concerns.

BTIG has downgraded Instacart to Neutral from Buy, withdrawing its $55 price target, citing significant competitive losses. The firm noted that Instacart's reliance on third-party delivery drivers and lack of control over pricing and margins are major concerns. Additionally, BTIG pointed out that partners representing 25% of Instacart's business have shifted to Amazon, DoorDash, and Uber.

Instacart has been facing increased competition in the grocery delivery market. In August, Wedbush analysts downgraded Instacart's stock due to rising competition, noting that the company's market share has fallen from around 70% in 2022 to around 58% by last year. The analysts cited increased scale and investments in logistics and grocery initiatives led by Uber and DoorDash as factors contributing to Instacart's share losses.

The latest announcement from Kroger and DoorDash, which will expand their delivery partnership to nearly 2,700 Kroger stores, further highlights the competitive landscape. This move will make Kroger's full selection of groceries and other basics available for delivery, challenging Instacart's position among intermediaries.

Instacart's stock has been volatile in response to these developments. The stock of Instacart parent Maplebear Inc. (CART) tumbled 10.4% on Monday following the announcement of Kroger and DoorDash's expanded partnership. This move underscores the challenges Instacart faces in maintaining its market share amidst growing competition.