DoorDash's Deal for Instacart Seen Rejiggering Negotiating Dynamics with Retailers
Dow Jones11-03 00:15
11:12 ET [Dow Jones]--A proposed tie-up between DoorDash and Instacart could give the combined platform more of a leg up on grocers when it comes to negotiating last-mile delivery deals, Morgan Stanley analysts say in a note. Most food retailers lack proprietary last-mile delivery networks, given the costs and complexity of building them out, the analysts say. Many players in the industry use DoorDash or Instacart as a result, with several using both platforms, including Costco, Kroger and Albertsons, the analysts say. Consolidation could thus give the combined platform more negotiating leverage, which could affect delivery economics, access to customers and retail media monetization, the analysts say.
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