Sources: DoorDash in Advanced Talks to Acquire Instacart for ~$17 Billion, Deal Could Close This Week
DoorDash is in advanced acquisition talks with Instacart at a ~$17B valuation, while Uber's negotiations are inactive.
Food delivery company DoorDash is in advanced talks to acquire grocery delivery platform Instacart in a deal that could value the latter at approximately US$17 billion, according to a source familiar with the matter speaking to Reuters on Monday. The agreement may be finalized as soon as Wednesday, though there are no guarantees it will come together. The same source confirmed that Instacart’s previous acquisition discussions with ride-hailing giant Uber are no longer active.
Shares of Instacart rose about 8% in regular trading following the news, while DoorDash fell around 6%. As of Friday’s close, Instacart had a market value of about US$13 billion. The Wall Street Journal first reported the developments.
The potential deal comes as the food delivery industry grapples with rising labor costs, tighter regulation of delivery workers, and fading pandemic-driven demand. Companies like DoorDash and Uber have been expanding into grocery and retail to drive growth beyond restaurant delivery. If successful, the acquisition would give DoorDash access to Instacart’s established marketplace and retailer ties, which it could combine with its own vast delivery network and customer base.
Separately, Instacart said in a regulatory filing on Monday that it would wind down its Caper Cart smart shopping-cart business by the end of the second quarter of 2027, expecting pre-tax charges of US$55 million to US$80 million related to the move.