DoorDash is in advanced negotiations to acquire Instacart in a transaction that could value the grocery-delivery platform at approximately $17 billion, potentially creating one of the largest combinations in the U.S. on-demand delivery industry.
A transaction could be finalized as soon as Wednesday, according to a source familiar with the negotiations cited by Reuters, although no agreement has been completed and the talks could still fail. Instacart’s separate negotiations with Uber are no longer active.
Investors reacted immediately to the potential takeover. Instacart shares rose approximately 8% during Monday’s regular session, while DoorDash declined roughly 6%. Instacart had a market capitalization of about $13 billion at Friday’s close.
The strategic logic centers on two large but historically different delivery networks.
DoorDash built its scale primarily through restaurant delivery before expanding aggressively into grocery, convenience and other retail categories. Instacart has established extensive relationships with supermarkets and retailers while operating its grocery marketplace and related technology services.
Combining those operations could give DoorDash substantially greater exposure to grocery spending while allowing the companies to integrate delivery infrastructure, customers and merchant relationships.
The negotiations come as delivery companies face rising labor costs, tighter regulation and intense competition following the pandemic-era surge in online ordering. Companies have increasingly expanded into grocery and retail in search of growth beyond restaurant delivery.
A transaction of this scale could also attract regulatory scrutiny because of overlapping delivery operations.
The immediate question is whether negotiations produce a definitive agreement and, if so, what valuation, financing structure and regulatory conditions accompany the transaction.
