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DoorDash in Advanced Talks to Acquire Instacart for Up to $17B
Confirmed
In Short: DoorDash is in advanced talks to acquire Instacart in a deal that could value the company at roughly $17 billion.
DoorDash is reportedly in advanced talks to acquire Instacart, a deal that could value the grocery-delivery platform at about $17 billion, according to multiple reports.
The potential acquisition would give DoorDash a larger foothold in the grocery delivery market, expanding beyond its core restaurant delivery business.
Instacart, which was valued at approximately $13 billion before the news of the potential transaction surfaced, operates a grocery-focused marketplace that connects consumers with supermarkets and other retailers.
DoorDash, which went public in 2020 at the height of the coronavirus pandemic, has been expanding aggressively into grocery, convenience, retail, and other local commerce categories.
The deal could be finalized as early as this week, though there is no guarantee that the talks will result in a deal.
Instacart’s grocery-specific data and fulfillment infrastructure support the company’s AI initiatives, which could be a significant factor in the potential acquisition.
DoorDash’s shares dropped roughly 6% on Monday, while Instacart’s stock climbed about 8% following the reports of the potential transaction.
The potential deal comes as the food delivery industry has been grappling with rising labor costs, tighter regulations regarding delivery workers, and higher competition after the surge in online ordering faded after the COVID-19 pandemic.
DoorDash completed its acquisition of Finnish delivery company Wolt in 2022, an all-stock transaction that expanded the combined company’s presence to 27 countries.
Instacart works with more than 2,200 retail banners representing nearly 100,000 stores, according to the company’s disclosures.
The discussions follow earlier reports that Instacart had explored a potential sale and held preliminary talks with both DoorDash and Uber.
Instacart’s former CEO, Fidji Simo, who was also a former executive at OpenAI and Meta, led the company through its 2023 IPO.
What this adds
DoorDash's shares have been volatile, dropping nearly 6% on Monday, while Instacart's stock has seen an 8% increase.
What's confirmed
- DoorDash is reportedly in advanced talks to acquire food delivery company Instacart in a deal that could value the company at roughly $17 billion.
What's still developing
- The transaction became effective in 2025 following court approval, expanding DoorDash’s global footprint and adding Deliveroo’s operations across several international markets.
- Meta's new AI agent Muse partners with Instacart for grocery shopping.
- Serve has 500 sidewalk delivery robots in Los Angeles DoorDash, which is looking to expand its business with drones and autonomous delivery robots, already delivers goods from supermarkets including Kroger and Safeway.
- Its shares have risen nearly 19% in the last five days to around $60 per share.
- DoorDash could finalize a deal to acquire Instacart as soon as this week, the Wall Street Journal reported Monday (Oct. 26), citing unnamed sources.
- “We believe our strengths in software, data and AI give us a greater opportunity to help retailers and brands understand what’s actually happening on store shelves and take action on that information,” Instacart said in the post.
- Reuters subsequently reported that the companies could finalize a deal as early as Wednesday, although negotiations could still fall apart.
- Meanwhile, DoorDash Tokenized Stock (DASHon) was trading at $167.76, down 5.78% over the past 24 hours, according to CoinMarketCap.
- DoorDash closed Monday at $168.44, down 6.10%, following a 3.53% decline on Friday.
- 25% off tickets now Back by popular demand: Save up to $300 on Disrupt Nscale, the buzzy U.K.-based AI data center startup, has appointed former OpenAI, Meta and Instacart executive Fidji Simo to its board.