Ordering dinner is only the beginning. Delivery platforms are expanding into groceries, retail products, advertising, and the technology that helps local stores compete online.
DoorDash's newly announced $17 billion acquisition of Instacart signals just how valuable that opportunity has become.
With Uber reporting Wednesday morning, five companies are competing to become the operating system for local commerce.
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Theme: Local Commerce, Grocery Delivery, Platform Consolidation, Retail Technology, and Last-Mile Logistics
The Next Delivery War Isn't About Food
Restaurant delivery has become a familiar part of everyday life. But the companies that built these services are increasingly interested in everything else consumers buy.
Groceries, household essentials, electronics, and convenience products represent enormous markets where digital ordering still has considerable room to grow.
DoorDash's latest results illustrate the opportunity.
Third-quarter orders increased 28% to 993 million, while marketplace gross order value climbed 36% to $33.9 billion. Revenue increased 34% to $4.6 billion.
Those figures include contributions from the acquired Deliveroo business. Excluding that acquisition, order growth was a more modest but still impressive 17%.
The next opportunity is expanding beyond delivery fees.
Platforms are developing advertising services, merchant software, subscription programs, and fulfillment technology. These businesses can generate additional revenue from transactions already flowing through their networks.
And DoorDash just made its biggest move yet.
What's Driving It
DoorDash Makes a $17 Billion Bet
On October 29, DoorDash announced an agreement to acquire Instacart for approximately $17 billion, offering $65 per share in cash, stock, or a combination.
The transaction would combine DoorDash's restaurant and retail delivery network with Instacart's grocery marketplace, fulfillment technology, and advertising platform.
Instacart already partners with retailers representing nearly 100,000 stores. DoorDash expects the combination to give Instacart customers access to more than 50,000 additional locations.
The companies also plan to combine DashPass and Instacart+ membership benefits, potentially making one subscription more valuable to customers.
But the acquisition isn't expected to close until late 2027 or the first half of 2028, subject to shareholder and regulatory approvals.
Antitrust scrutiny could become a significant obstacle, particularly given the companies' overlapping grocery-delivery operations.
Uber Reports Wednesday
Uber releases third-quarter results Wednesday, November 4, with its earnings call scheduled for 8:00 a.m. ET.
Its delivery business enters earnings with substantial momentum.
Second-quarter delivery gross bookings increased 26% to $27.5 billion, while delivery revenue climbed 28% to $5.2 billion.
Delivery segment operating income increased 38% to approximately $1.1 billion.
Uber's competitive advantage is its combination of mobility and delivery. Customers can use the same application for transportation, restaurant orders, groceries, and other everyday services.
The question is whether DoorDash's expanding scale will pressure Uber to invest more aggressively in retail partnerships and customer incentives.
The Chain Reaction
Consumers order more products online → delivery platforms expand into additional retail categories → larger networks attract more merchants → advertising and subscription revenue grows → operating efficiency improves → industry consolidation accelerates
The risk is that competition, regulatory restrictions, and acquisition costs absorb the potential benefits.
What's Working
Advertising Is Becoming a Major Profit Engine
Instacart's third-quarter gross transaction value increased 15% to $10.5 billion, while revenue grew 17%.
But advertising and other revenue increased 23% to $331 million.
That's significant because advertising allows platforms to earn money from brands seeking visibility, not simply from processing orders.
Instacart's adjusted EBITDA increased 23% to $342 million, demonstrating how additional services can support profitability.
The Model Is Working Overseas
Grab provides another example.
The Southeast Asian platform reported 21% growth in third-quarter delivery gross merchandise value to $4.5 billion.
Delivery segment adjusted EBITDA increased 58% to $123 million, supported by stronger advertising monetization and operating efficiency.
MercadoLibre is demonstrating similar benefits from combining digital commerce, fulfillment, and advertising across Latin America.
Its second-quarter commerce revenue increased 50% to $5.8 billion, while advertising revenue grew 73% in U.S. dollar terms.
What to Watch
Wednesday's Uber report should focus on delivery gross bookings, profitability, merchant partnerships, advertising, and customer engagement.
Watch whether management addresses DoorDash's proposed acquisition and its implications for grocery delivery.
MercadoLibre also reports Wednesday after the close, providing another perspective on digital commerce and fulfillment investment.
The strongest signal would be continued transaction growth accompanied by improving margins rather than heavier promotional spending.
DoorDash (DASH)
What it does: Operates a global delivery marketplace connecting consumers with restaurants, grocery stores, and retailers.
Why it fits: Its planned Instacart acquisition would substantially expand its presence in grocery technology and local commerce.
What stands out: Q3 revenue increased 34% to $4.6 billion, while the company announced its approximately $17 billion acquisition agreement.
The Takeaway: Buy this if you want the ambitious platform leader expanding beyond restaurant delivery into broader retail infrastructure.
The risk is regulatory opposition, acquisition financing, and integration challenges.
Uber Technologies (UBER)
What it does: Operates global ride-hailing, food delivery, grocery delivery, and logistics platforms.
Why it fits: Its extensive customer network provides opportunities to expand delivery services and cross-platform subscriptions.
What stands out: Q2 delivery gross bookings increased 26% to $27.5 billion, while segment operating income grew 38%.
The Takeaway: Buy this if you want a diversified mobility and delivery platform with improving profitability.
The risk is intensifying competition and higher customer-acquisition costs.
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Instacart (CART)
What it does: Provides grocery delivery, fulfillment technology, retail advertising, and e-commerce infrastructure.
Why it fits: Its pending acquisition by DoorDash creates a merger-arbitrage opportunity rather than a conventional long-term growth investment.
What stands out: Q3 advertising and other revenue increased 23%, while adjusted EBITDA reached $342 million. The agreed transaction values its shares at $65 each, subject to the deal's payment terms.
The Takeaway: Buy this only if you want a merger-driven investment and are comfortable with the deal's extended timeline.
The risk is regulatory rejection, transaction delays, or changing consideration value.
MercadoLibre (MELI)
What it does: Operates Latin America's leading e-commerce marketplace alongside logistics, payments, advertising, and financial services.
Why it fits: Its integrated ecosystem demonstrates how delivery infrastructure can support broader digital commerce.
What stands out: Q2 commerce revenue increased 50% to $5.8 billion, while advertising revenue grew 73% in dollars.
The Takeaway: Buy this if you want a diversified digital commerce leader benefiting from logistics scale and multiple revenue streams.
The risk is elevated investment spending, regional competition, and currency volatility.
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Grab Holdings (GRAB)
What it does: Operates delivery, ride-hailing, financial services, and merchant technology across Southeast Asia.
Why it fits: Its expanding platform demonstrates how local delivery networks can support additional services and improved profitability.
What stands out: Q3 delivery gross merchandise value increased 21%, while delivery segment adjusted EBITDA jumped 58%.
The Takeaway: Buy this if you want a higher-growth international platform with improving delivery economics.
The risk is promotional spending, regional competition, and inconsistent profitability.
Delivery Is Becoming Infrastructure
The delivery industry is evolving from transporting meals into providing the technology that connects local businesses with consumers.
DoorDash wants greater scale, Uber offers a diversified platform, Instacart brings grocery technology, and MercadoLibre and Grab demonstrate how the model can expand internationally.
Wednesday's Uber results will provide another important competitive test.
The next delivery winner may not be the company delivering the most orders, but the one generating the most value from every transaction.
Best Regards,
— Adam Garcia
Elite Trade Club
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