A war is brewing in a big way. We look at Instacart on September 18th went through with their IPO at $30 a share. Last time I looked a couple hours ago it was about $27.66 a share, and this morning a report came out that Instacart's first couple of quarters on the public markets could come with slower revenue growth and lower profit than it reported in the first half, according to private forecasts from analysts at the banks that underwrote Instacart's IPO. The low expectations could further dent Instacart's stock price, which has still been hovering around its IPO price. If the company can surpass forecast, analysts at Goldman Sachs and other banks expect Instacart to report between 7 and 8% revenue growth in the second half. Two people familiar with the matter said that's down from growth of 31% in the first half and 50% growth in profits. At the same time that Instacart is floundering, and I would use that word, what we find is Uber Eats and DoorDash picking up steam and trying to get to the grocery business. Uber Eats has followed Instacart's lead and they now offer SNAP recipients the ability to use their benefits to order groceries.
So what do you think? Is Instacart really in trouble and have major competitors from DoorDash and Uber Eats now?
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