DoorDash stock remains lowest-cost delivery provider, Wells Fargo says

Investing.com - DoorDash (NYSE: DASH) maintained its position as the lowest-cost third-party delivery provider in the third quarter despite posting the largest quarterly fee increase among peers, according to a Wells Fargo survey released Tuesday.

The survey found DoorDash's total basket costs remained 2% below Uber (NYSE: UBER) and Instacart in the third quarter, even as its fees rose 3.5% from the second quarter. Uber's fees increased 16% in the third quarter, marking a second consecutive quarter of fee increases and bringing its pricing in line with DoorDash, with both platforms now charging a 16% premium over Instacart.

Third-party delivery pricing continued to converge for a second straight quarter, with DoorDash's basket discount narrowing approximately 2.5 percentage points versus Instacart and Uber to a 1% and 2.5% discount respectively, down from 3.5% and 5% in the second quarter. The third quarter saw broad-based basket inflation of 2% across all delivery channels.

The first-party basket discount versus third-party delivery providers held constant at approximately 36% in the third quarter. Price increases were driven primarily by 2.2% SKU-level inflation, slightly offset by lower fees averaging down 2.4%, led by DoorDash's 19% quarterly fee decline.

In-store total basket costs rose 4% in the third quarter, narrowing the in-store discount to third-party providers by approximately 2 percentage points to 23%, marking a third straight quarter of convergence and the narrowest gap observed in the Wells Fargo survey.

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