DoorDash is reportedly negotiating an advanced deal to purchase Instacart, a transaction that could value the grocery platform at roughly $17 billion. This potential acquisition, which may be finalized as early as Wednesday, has already triggered significant market movement.
The $17 billion valuation and the market's mixed reaction
The news of a potential merger has sent shockwaves through the delivery sector, causing Instacart shares to climb approximately 8% in regular trading. Conversely, DoorDash saw its stock price dip by around 6% following the reports, according to the source material.
As reported by Reuters, the deal is currently in advanced stages, though a final agreement is not yet guaranteed. While Instacart’s market value sat at roughly $13 billion just before the news broke, DoorDash's market capitalization stood at approximately $73 billion, according to The Wall Street Journal.
A strategic pivot from restaurant roots to grocery domnance
DoorDash is attempting to diversify its revenue streams by moving aggressively into the grocery and retail sectors. This move follows a pattern of international expansion, including the previous acquisitions of the Finnish company Wolt in 2022 and the British firm Deliveroo in 2025.
Industry experts suggest that the combination of DoorDash’s massive delivery network and Instacart’s established retailer relationships creates a formidable competitor. Nick Smith, co-founder of Manifesto Growth Architects, noted that DoorDash appears to be a natural fit for Instacart's specialized expertise, provided the deal delivers actual profitable growth rather than just sheer scale.
The end of Instacart's pursuit of Uber
The potential DoorDash takeover effectively closes the door on other major players in the space. The report says that Instacart’s previous discussions with Uber are no longer active, leaving DoorDash as the primary suitor for the grocery giant.
For Uber, the missed opportunity means a slower path toward becoming an "everyday convenience platform," a role that requires deep integration into grocery logistics. by securing Instacart, DoorDash may leapfrog Uber in the race to own the household delivery market.
Regulatory hurdles and the Caper Cart wind-down
Several significant unknowns remain regarding the long-term viability of a combined entity. One major concern is whether the deal will face scrutiny from regulators, similar to the situation where Instacart agreed to $60 million in consumer refunds following FTC accusations of hidden fees.
Furthermore, the financial implications of Instacart's internal restructuring remain unclear. the company recently announced it would wind down its Caper Cart smart shopping-cart business by the second quarter of 2027, a move expected to result in pre-tax charges between $55 million and $80 million. It remains to be seen how these losses and the ongoing regulatory landscape will influence the final terms of the DoorDash acquisition.
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