DoorDash in advanced talks to buy Instacart for $17bn

Summarised from 2 outlets · Updated 28 Oct, 21:56 · Archive

DoorDash is in advanced talks to acquire grocery-delivery platform Instacart in a deal valued at about $17 billion.

DoorDash is in advanced talks to acquire Instacart in a deal that could value the grocery-delivery platform at about $17 billion, sources told Reuters and CNBC. A deal could be finalised or announced as soon as Wednesday or Thursday morning, although there are no guarantees it will come together. Instacart's previous deal talks with Uber are no longer active.

The acquisition would give DoorDash access to Instacart's established marketplace and retailer relationships, which it could combine with its own delivery network and customer base. DoorDash has already begun expanding beyond restaurant delivery into groceries and other retail sectors, including partnerships with Kroger and regional grocers, as well as non-food retailers such as Sephora and Staples. Instacart went public in 2023 and was one of the biggest beneficiaries of the pandemic-driven surge in grocery delivery, but has struggled to maintain that momentum since.

Instacart has faced increasing competition from Amazon and Walmart, which have invested heavily in same- and next-day delivery services. In December, Instacart agreed to pay $60 million to settle Federal Trade Commission allegations that it misled users and deployed unlawful subscription enrolment practices. Analysts have noted that a combination of Instacart and DoorDash could attract antitrust scrutiny given the companies' market overlap.

How it is being reported

• DoorDash's deal to buy Instacart coming as early as Thursday morning, sources tell CNBCSpeculation of a deal has swirled since last week, and several outlets reported the acquisition could value Instacart at roughly $17 billion.CNBC · 28 Oct, 21:36
• DoorDash in talks to buy delivery rival Instacart in $17B deal: reportInstacart's deal talks with Uber are no longer active, a source told rivals.New York Post · 26 Oct, 23:18

In this story: DoorDash · Instacart · Uber · Amazon · Walmart · Kroger · Federal Trade Commission

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log