Demand remained strong across ride-hailing, food delivery, grocery, and retail segments, driven by both user growth and increased order frequency.

The DashPass and Uber One subscription programs continue to scale, with subscribers spending approximately three times more than non-subscribers.

DoorDash's DashPass membership in the US accelerated in the first quarter, driven by increased sign-ups and lower churn. Assessing the competitive landscape, Morgan Stanley calculated that DoorDash's online grocery and retail gross order value (GOV) reached $4.1 billion in Q1 2026, up 32% year-over-year, while Uber's GOV was $3.5 billion, up 40%.

Instacart's GOV of $10.3 billion significantly exceeds both competitors, but grew only 13%, while DoorDash and Uber are expanding approximately three times faster.

"We estimate that DASH/UBER's online grocery and retail business currently accounts for ~40%/~35% of CART's GOV, but DASH/UBER are growing approximately three times faster and gaining market share," the research note states.

Both DoorDash and Instacart reported improvements to their generative AI-powered tools for onboarding and inventory management, which Morgan Stanley believes could further drive the shift from offline to online.

Amazon was identified as a key competitor to watch, given the expansion of its Amazon Now service and advancements in agent technology and robotics.

Morgan Stanley maintained an "Overweight" rating on DoorDash shares with a $275 price target, implying 48% upside from the then-current price of $167.97, based on a 25x multiple to adjusted 2027 EBITDA of $4.806 billion. Revenue is projected at $17.65 billion in 2026 and $21.26 billion in 2027.

Uber maintained its Outperform rating and $100 target price, implying 26% upside from $79.17, based on a 14x multiple to 2027 adjusted EBITDA of $14.188 billion.

Gross bookings are projected at $234.29 billion in 2026 and $275.3 billion in 2027. Morgan Stanley raised its 2027 adjusted EBITDA and EPS estimates by 2% each after the Mobility segment's first-quarter results beat expectations.

Instacart maintained its Outperform rating with a $48 target price. First-quarter bookings totaled 91 million, 2.7% below the 94 million estimate, while adjusted EBITDA of $300 million was in line with the $303 million estimate. Adjusted 2026 EBITDA is forecast at $1.286 billion.

Snap's share price target was raised to $7 from $6.50 after first-quarter adjusted EBITDA of $233.3 million, beating the $186.1 million estimate.

The increase was partially offset by the exclusion of the anticipated Perplexity partnership, which was projected to add up to $400 million in high-margin revenue in 2027, and a 2 million-quarterly decline in North American user count. Morgan Stanley lowered its 2026 and 2027 revenue forecasts by 1.2% and 2.9%, respectively, but raised its 2026 EBITDA forecast by 13.5%.