DoorDash stock declines amid GrubHub's new fee policy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 22 2025
0mins
Should l Buy DASH?
Source: TipRanks
DoorDash Inc. shares fell 5.67% and hit a 20-day low as the company faces increased competition from GrubHub, which has eliminated delivery fees on orders over $50. This policy aims to attract customers from DoorDash and Uber Eats, potentially impacting DoorDash's market share, which currently stands at 71%. GrubHub's strategy to enhance customer loyalty and increase order sizes could pose a significant challenge for DoorDash, especially in a market where it is already experiencing pressure. The implications of this competitive move could lead to a further decline in DoorDash's stock if it fails to respond effectively.
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Analyst Views on DASH
Wall Street analysts forecast DASH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DASH is 282.32 USD with a low forecast of 205.00 USD and a high forecast of 360.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
24 Buy
6 Hold
0 Sell
Strong Buy
Current: 183.860
Low
205.00
Averages
282.32
High
360.00
Current: 183.860
Low
205.00
Averages
282.32
High
360.00
About DASH
DoorDash, Inc. is engaged in providing services that reduce friction in local commerce and help merchants connect with consumers in their communities. The Company's primary offerings include the DoorDash Marketplace and the Wolt Marketplace (together, the Marketplaces), and its Commerce Platform. The Company's Marketplaces operate in over 30 countries across the globe and provide an integrated suite of services that help merchants establish an online presence, connect with consumers in their communities, and solve mission-critical challenges, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers advertising as a value-added service through its Marketplaces to help merchants and consumer packaged goods companies increase consumer engagement. The Company also has offsite advertising capabilities. Its white-label delivery fulfillment services include DoorDash Drive On-Demand and Wolt Drive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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