DoorDash is in talks to buy Instacart for around $17 billion
DoorDash is in talks to buy Instacart for about $17 billion.
The short version
- The huge grocery delivery deal could be reached soon.
- Instacart is also winding down its smart cart business.
- This massive merger will reshape how groceries reach your kitchen.
DoorDash, the restaurant and convenience delivery giant, is in advanced talks to acquire Instacart, the grocery Technology specialist, in a massive deal that could value the company at around $17 billion, according to a report by The Wall Street Journal. An agreement between the two delivery giants could be reached as soon as tomorrow.
Meanwhile, Instacart said in a regulatory filing that it would wind down its Caper Cart smart cart business by the end of the second quarter of 2027, expecting pre-tax charges of $55 million to $80 million related to the move. The plan is to reinvest any savings into strategic growth initiatives, which includes other in-store solutions like smart price tags and computer vision Technology to help grocers track in-store inventory.
Brittain Ladd, a supply chain consultant and former Amazon executive, said the real value of Instacart to DoorDash is not delivery volume, but access to relationships with nearly every major grocer in the country and an advertising business built on household data.
Combined with DoorDash’s restaurant and international businesses, that access becomes a powerful platform for entering new markets. Many grocers work with Instacart because it is not DoorDash, and experts say the key will be offering automated store fulfilment to keep them on board.
DoorDash processes nearly 4 billion orders a year, giving it unprecedented insight into what consumers buy and cook at home. With automated kitchens and massive delivery density, the combined company could soon deliver prepared meals priced below what it costs to buy ingredients and cook at home.
When two delivery giants merge into one giant app on your phone, every grocery store and restaurant owner needs to watch how fulfillment costs shift. That is one expensive cart ride.
