DoorDash in talks to buy Instacart in roughly $17 billion deal
DoorDash is in advanced talks to buy Instacart for about $17 billion.
The short version
- A final deal could come as soon as Wednesday.
- Instacart shares rose eight percent after the news broke.
- The massive buyout would combine restaurant delivery with grocery shopping.
- Uber talks with Instacart are no longer active.
Why it matters to you. For your business, a giant delivery merger means the apps you might use for your store or your lunch are rewriting the rules of local logistics.
DoorDash, the food-delivery app company, is in advanced talks to buy Instacart, the grocery-delivery platform, in a deal that could value the company at about $17 billion, according to Reuters. A deal may be finalized as soon as Wednesday, although a source familiar with the matter warned there are no guarantees it will come together.
Instacart's earlier deal talks with Uber, the ride-sharing and delivery company, are no longer active. Shares of Instacart jumped about 8 percent in regular trading on Monday, while DoorDash shares fell around 6 percent. The food-delivery industry has been grappling with rising labor costs and tighter regulation of delivery workers after the pandemic-driven boom in online ordering faded.
Both companies have been racing to expand beyond restaurant meals into grocery and retail. If successful, the acquisition would give DoorDash access to Instacart's established marketplace and retailer ties, combining them with its own vast delivery network and customer base. Instacart also announced on Monday it will wind down its Caper Cart smart shopping-cart business by the end of the second quarter of 2027, taking pre-tax charges of up to $80 million.
When two delivery giants combine, expect fewer choices and tighter fees on your next order.
