Instacart's Grocery Delivery Dominance Under Threat as Competitors Circle
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Instacart is the current market leader in grocery delivery platforms, but facing increasing competition from DoorDash and Uber.
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Instacart has no competitive advantages or barriers to entry according to Morningstar's analysis.
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The online grocery delivery market is projected to grow 13% annually to $77 billion by 2027.
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Instacart gets a cut of around 5-6% of the $1.5 trillion total US grocery market when consumers order through its platform.
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Morningstar estimates Instacart's market share will decline from over 70% in 2022 to around 50% by 2027 due to heightened competition.