DoorDash Partners with OpenAI to Embed Grocery Shopping in ChatGPT, Testing New Vertical Economics

What happened

DoorDash announced a partnership with OpenAI to launch a grocery shopping app directly within ChatGPT, enabling users to turn recipes into grocery orders for delivery from local stores. This initiative aligns with DoorDash's strategic expansion into non-restaurant verticals like grocery, which the DeepValue report identifies as crucial for broadening its addressable market and justifying its premium valuation. By leveraging ChatGPT's large user base, DoorDash aims to drive new customer acquisition and increase order frequency, potentially enhancing its network effects and market positioning. However, the DeepValue report cautions that new verticals must achieve positive and scalable unit economics to be financially viable, making this another test of DoorDash's execution capabilities. While the partnership showcases innovation, it does not immediately mitigate fundamental risks such as regulatory pressures, competitive intensity, and integration challenges highlighted in the report.

Implication

The ChatGPT integration may accelerate DoorDash's penetration into the grocery segment, potentially increasing Marketplace GOV and revenue growth in the near term. Success here could improve long-term cash flow prospects, supporting the premium valuation if unit economics turn positive and scalable, as emphasized in the DeepValue report. However, DoorDash's current valuation at 93x trailing P/E and 28% above the DCF anchor already discounts high growth, so incremental news like this is unlikely to justify further multiple expansion without tangible financial improvements. Key risks from the report, including regulatory headwinds on gig labor, competitive pressures, and integration challenges with acquisitions like Deliveroo, remain unaddressed and could overshadow new initiatives. Investors should view this as a positive strategic step but await clearer evidence of profitability and scalability in non-restaurant categories before reconsidering the WAIT stance.

Thesis delta

The announcement reinforces DoorDash's strategic focus on expanding into grocery and leveraging AI partnerships, directly addressing one of the watch items in the DeepValue report regarding new vertical execution. However, it does not materially alter the WAIT stance because core challenges—such as the rich valuation, unresolved regulatory risks, and execution uncertainty in integrating international acquisitions—persist. A shift to a more positive investment thesis would require demonstrable improvements in unit economics and sustained financial outperformance from such initiatives.