DoorDash in advanced talks to acquire Instacart in $17 billion deal, reports say

DoorDash is in advanced talks to acquire grocery delivery rival Instacart in a deal valued at approximately $17 billion, according to reports from The Wall Street Journal and Reuters. The potential acquisition could be announced as soon as this week, bringing together two of America’s largest delivery platforms in a transaction that could reshape the online food and grocery market.

The latest development comes just three days after TechStartups reported that Instacart was exploring a potential $17 billion sale to Uber or DoorDash. At the time, both companies had been identified as potential buyers. DoorDash has now emerged as the leading contender, with negotiations reportedly reaching an advanced stage.

“A deal could be finalized as soon as this week and could value Instacart at around $17 billion,” the Wall Street Journal reported, citing people familiar with the matter who cautioned that an agreement was not guaranteed.

Reuters also reported that an agreement could be finalized as early as Wednesday. Talks between Instacart and Uber are no longer active, leaving DoorDash positioned to acquire one of Silicon Valley’s best-known consumer technology companies.

“DoorDash is in advanced talks to acquire Instacart in a deal that could value the grocery-delivery platform at about $17 billion,” Reuters reported Monday, citing a source familiar with the matter. “A deal may be finalized as soon as Wednesday, although there are no guarantees it will come together,” the source added.

Semafor reported that the companies are now negotiating exclusively. The publication cautioned that an agreement remains uncertain and could still fall apart. Neither company has publicly confirmed a transaction. Instacart declined to comment to Reuters, and DoorDash did not immediately respond to its request.

Investors reacted quickly. Instacart shares climbed roughly 8% during Monday’s trading session, extending gains from Friday’s initial sale reports. DoorDash shares fell around 6%, reflecting investor concerns about the potential acquisition’s cost and its implications for the company’s future.

Instacart had a market capitalization of about $13 billion at Friday’s close, making the reported $17 billion transaction value a substantial premium.

Why DoorDash wants Instacart

A successful acquisition would give DoorDash something that could take years to build independently: Instacart’s established relationships with grocery retailers, its customer base, and a marketplace connecting shoppers with supermarkets across North America.

DoorDash built its business around restaurant deliveries before moving aggressively into groceries, convenience stores, and other retail categories. Instacart took a different path, becoming a major grocery delivery platform with deep ties to supermarket chains.

Bringing the two businesses together could create a formidable competitor to Uber Eats, Amazon, and Walmart in the growing home-delivery market.

Instacart’s appeal extends beyond grocery orders. Its advertising business gives consumer brands access to shoppers at the moment they make purchasing decisions, creating another potential revenue opportunity for DoorDash.

The companies have considered joining forces before. In 2021, DoorDash reportedly explored acquiring Instacart at a valuation between $40 billion and $50 billion. Those discussions collapsed, partly over concerns about regulatory approval.

Five years later, Instacart could change hands for less than half that amount, illustrating how dramatically valuations have shifted since the pandemic-era delivery boom.

Founded in 2012, Instacart became one of the most recognizable names in online grocery shopping as millions of Americans turned to home delivery during COVID-19 lockdowns. The company went public in September 2023 after its private valuation had fallen from a peak of $39 billion in 2021.

A $17 billion deal could redraw the delivery market

The proposed acquisition would mark another major step in DoorDash’s expansion through acquisitions.

In 2025, DoorDash completed its approximately $3.9 billion purchase of British delivery company Deliveroo, extending its international reach. It previously acquired Finnish delivery company Wolt in 2022.

Buying Instacart would represent a different kind of expansion, strengthening DoorDash’s position in the U.S. grocery market at a time when competition from Amazon, Walmart, and Uber continues to intensify.

The biggest question may be regulatory approval. Both DoorDash and Instacart compete in grocery delivery, and a merger could raise concerns about reduced competition, retailers’ negotiating position, and the choices available to consumers.

A $17 billion acquisition would give DoorDash a much larger presence in grocery delivery, but it would come with considerable financial and regulatory risks.

For now, the companies remain independent, and no binding agreement has been announced.

The negotiations nevertheless mark a significant turn from Friday’s reports of Instacart exploring a sale. What began as discussions involving multiple potential buyers has narrowed to advanced talks with DoorDash, bringing the possibility of one of the delivery industry’s largest acquisitions closer to reality.