Wells Fargo notes Alphabet’s (GOOG) (GOOGL) Waymo announced first food delivery partnership with DoorDash (DASH), launching initial pilot in Phoenix before year-end 2025. The firm believes current Waymo unit economics are extraordinarily limiting for scaled food delivery. Wells estimates $3.50 contribution loss/delivery order. Maybe a utilization play here, but Wells struggles to see near-term opportunity unless vehicle and sensor costs fall materially. The firm has an Equal Weight rating on DoorDash with a price target of $301 on the shares.
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