DoorDash CEO claims competitive edge over Amazon in groceries

DoorDash CEO Tony Xu highlights that his firm’s grocery selection offers an important edge over Amazon: a variety of options.

Amazon is intensifying its focus on grocery delivery, especially with perishable items, including fruits and ice cream.

Last month, the retail and tech behemoth revealed plans to broaden same- and next-day grocery delivery across more regions of the US this year, further expanding its already large service area — a move that previously caused a decline in Instacart and DoorDash stock prices.

According to Xu, DoorDash possesses a feature that draws shoppers, and that Amazon hasn't matched, as shared during the company's fourth-quarter earnings announcement on Wednesday.

While Amazon owns Whole Foods alongside its own food labels, DoorDash partners with established grocery chains.

Over recent years, the delivery giant has formed multiple agreements; last year, it expanded its relationship with Kroger and initiated new ventures with regional chains like Schnucks in the Midwest.

Few patrons do all their shopping at a single market, Xu pointed out. Many visit several shops weekly, particularly for certain fresh groceries like fruits, meats, and seafood.

"Customers love having options," shared Xu during the call, expressing confidence there will "remain significant interest in the DoorDash service" as a consequence.

Additionally, DoorDash is enhancing what they offer to retailers, including order handling through its DashMarts, which are small store-style locations meant for fulfilling and delivering purchases.

Xu stated DoorDash is "ensuring that every grocery partner has what they need to stay competitive with giants like Amazon."

DoorDash shares increased by up to 14% in after-hours trading on Wednesday, despite posting underwhelming fourth-quarter earnings and 2026 projections.

Last November, the company's stock faced its steepest one-day decline after it revealed plans to invest hundreds of millions into technology upgrades.