Khrom Investments Fund, LP on DoorDash

Khrom initiated DoorDash after the shares had fallen roughly 45% from their October 2025 high, believing the market was underestimating the durability of its competitive advantages and the size of its long-term opportunity. Investors were concerned that several hundred million dollars of incremental investment would delay margin expansion and that AI agents could disintermediate the consumer app, but Khrom viewed the reinvestment as rational because the core marketplace remained strongly growing. The fund argues that DoorDash's real moat is its dense three-sided network of consumers, couriers and merchants rather than the app interface, so AI may change where orders originate without eliminating the value of the fulfillment network. Khrom also sees U.S. restaurant delivery settling into a more rational duopoly, with DoorDash holding roughly 64% share and Uber's fee increases signaling greater competitive discipline. Additional growth can come from higher customer frequency, grocery and retail expansion, the Commerce Platform, advertising and autonomous delivery. Roughly five years out, Khrom believes DoorDash could earn about $15 per share and merit at least 25 times earnings, implying a share price of approximately $375 versus an average cost of roughly $160.