DoorDash is in advanced talks to acquire Instacart in a deal that could value the grocery delivery company at roughly $17 billion, with an announcement possibly landing as soon as this week. Sources caution that no final decision has been made and the talks could still collapse before any agreement is signed.
The potential tie-up was first reported Friday, according to a report from The Information cited by TechCrunch. A deal could be finalized as soon as the week of October 27, according to a report cited by Reuters. Bloomberg, however, struck a more cautious note, reporting that “no final decision has been made and discussions could fall through,” according to Bloomberg. Instacart had reportedly hired an investment bank to evaluate its options and held acquisition talks with DoorDash, per a report from The Information cited by TechCrunch.
Notably, Instacart had also been in separate deal talks with Uber, but those discussions are no longer active, per the same Reuters report. The Wall Street Journal report cited by Reuters indicates Uber previously considered buying Instacart before those talks fell apart, leaving DoorDash as the remaining suitor.
A Grocery Giant Meets a Delivery Powerhouse
The two companies occupy different corners of the same industry. Instacart focuses on grocery delivery rather than restaurant-prepared meals, while DoorDash delivers meals and retail items to customers' doors, according to a report from the Los Angeles Times. DoorDash already delivers goods from supermarkets including Kroger and Safeway, and it partners with CVS, Macy's and Target, the paper reports.
The scale gap between the two companies is stark. DoorDash has more than 200,000 grocery and retail stores on its marketplace, while Instacart works with more than 2,200 grocery brands across roughly 100,000 stores, according to a report from Nation's Restaurant News. Instacart generated $3.75 billion in revenue last year compared with $13.72 billion for DoorDash, per the same report.
Markets React to the Takeover Buzz
Wall Street has already priced in the speculation. Instacart shares rose nearly 19% over the five days before the Los Angeles Times' report, trading around $60 per share and pushing its market value to $14 billion, the paper reported. That's a jump from the roughly $13 billion market value Instacart held as of the Friday before the report broke, according to Reuters.
DoorDash stock moved in the opposite direction. Shares fell 10% over the same five-day stretch, closing around $170 per share on Tuesday for a market value of about $73 billion, per the Los Angeles Times report. TechCrunch similarly noted that reports of a potential sale caused Instacart's share price to spike more than 9.2% on Friday, while both Uber and DoorDash stock declined.
Why Delivery Platforms Are Chasing Groceries
The potential combination reflects a food-delivery industry grappling with rising labor costs, tighter regulation of delivery workers and growing competition, according to Reuters. Companies across the sector are expanding into grocery and retail to drive growth beyond restaurant delivery, the same report notes.
The numbers help explain the urgency. DoorDash's share of spending across major delivery apps rose from 44% in the second quarter of 2021 to 59% in the third quarter of 2026, while Instacart's share over that same period fell from 26% to 18%, according to the Nation's Restaurant News report. Uber Eats, meanwhile, climbed from 16% to 18% share over the same window, the outlet reported.
Instacart's underlying business is still growing, even as its market position erodes. Its U.S. grocery sales are expected to rise 12.7% this year, but its share of grocery ecommerce sales is projected to decline from 15.9% in 2024 to 15.3% in 2026 and 14.6% by 2028, according to eMarketer.
A Crowded Field of Rivals
DoorDash and Instacart compete with several other online delivery services, including Amazon, Walmart, Postmates and Uber, the Los Angeles Times reported. DoorDash's proposed acquisition would combine Instacart's marketplace and retailer relationships with DoorDash's own delivery network and customer base, according to Reuters.
Uber, for its part, isn't sitting still either. The company has a pending deal to acquire Delivery Hero and has announced plans to buy ezCater for $2.3 billion in cash, according to the Nation's Restaurant News report. Both DoorDash and Instacart continue to rely on independent contractors to shop and deliver goods through their apps, a model that remains central to each company's operations.
DoorDash went public in 2020, while Instacart listed in 2023. DoorDash is also looking to expand its business with drones and autonomous delivery robots, per the Nation's Restaurant News report. A DoorDash spokesperson did not immediately respond to a request for comment, according to the Los Angeles Times.
What Happens Next
Any deal of this size would likely draw scrutiny from federal antitrust regulators. Generally, after companies report a proposed merger, agencies conduct a preliminary review to determine whether the transaction raises concerns warranting closer examination, with the Federal Trade Commission and Department of Justice sharing jurisdiction and assigning closer reviews case by case, according to the Federal Trade Commission.
For now, the deal remains unconfirmed, and sources stress that discussions could still fall apart before any agreement is reached. Whether DoorDash and Instacart formalize terms this week or walk away from the table, the talks underscore how much the delivery landscape has shifted since both companies went public.
