DoorDash is in advanced talks to acquire grocery-delivery rival Instacart, with a deal that could be finalized as early as this week and value Instacart at around $17 billion, according to a Wall Street Journal report.
People familiar with the matter told the Journal that negotiations are well advanced, though they cautioned there are no guarantees a transaction will close. Reuters confirmed the advanced stage of the discussions, reporting that a deal could come as soon as Wednesday and that earlier talks between Instacart and Uber are no longer active.
The reports sparked an immediate market reaction. Instacart shares (ticker: CART) rose roughly 8% on Monday, closing near $60.88 and lifting the company’s market capitalization to about $14 billion. DoorDash (DASH) shares fell around 6%, leaving the food-delivery leader valued at approximately $73 billion.
A combination would pair DoorDash’s dominant position in restaurant delivery with Instacart’s established grocery marketplace and retailer relationships. Analysts note the strategic logic: the merged company could better compete with Amazon and Walmart, which have rapidly expanded their own online grocery and retail delivery capabilities. The broader industry has shifted since the pandemic-era boom, with rising labor costs, tighter regulation of delivery workers, and slower growth in restaurant orders pushing companies to expand into groceries and other retail categories.
This is not the first time the two companies have discussed a tie-up. In 2021, DoorDash explored acquiring Instacart at a valuation of $40 billion to $50 billion, but those talks collapsed over price and antitrust concerns during the Biden administration. The current environment differs, with Instacart’s market value far lower and DoorDash having pursued an active acquisition strategy, including its purchase of U.K.-based Deliveroo and the SevenRooms restaurant platform.
Instacart, which went public in 2023 under the name Maplebear, has been exploring a sale. The Information reported last week that the company hired an investment bank and held preliminary discussions with potential buyers, including DoorDash and Uber. Uber ultimately walked away from the process.
Neither company has commented publicly. Instacart declined to comment when contacted by Reuters, while DoorDash did not immediately respond to inquiries.
If a deal is completed, it would create one of the largest home-delivery platforms in the U.S., combining restaurant meals, groceries, and convenience items under one network of customers and drivers. Any agreement would still face regulatory scrutiny given the companies’ scale and overlapping businesses. For now, the talks remain fluid, and markets will be watching for further developments in the days ahead.
