DoorDash is in advanced talks to acquire Instacart in a deal that could value the grocery-delivery platform at approximately $17 billion, as the US food-delivery industry seeks new sources of growth beyond restaurant orders and faces mounting pressure to improve profitability.
An agreement could be finalized as soon as Wednesday, although the discussions could still fall apart, a person familiar with the matter told Reuters on Monday. Instacart’s separate discussions with Uber are no longer active, the source added.
The potential transaction would bring together DoorDash’s extensive restaurant-delivery network and customer base with Instacart’s established grocery marketplace and relationships with retailers. It would give DoorDash a larger presence in grocery delivery, a segment that could help generate more frequent customer interactions and diversify revenue beyond restaurant meals.
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Investors responded differently to the news. Instacart shares rose about 8% during regular trading, while DoorDash fell around 6%. Instacart had a market capitalization of approximately $13 billion at Friday’s close, putting the reported $17 billion deal valuation above its recent market value.
The Wall Street Journal first reported the developments on Monday.
Instacart has been exploring a potential sale and held preliminary discussions with prospective buyers, including DoorDash and Uber, The Information reported on Friday.
The talks come as delivery companies reconsider their growth strategies following the pandemic-era surge in online ordering. Higher labor costs, tighter regulation of delivery workers and intensifying competition have made it harder for operators to rely on restaurant delivery alone to sustain expansion.
Acquiring Instacart is expected to accelerate DoorDash’s move into grocery and everyday retail. On the other hand, a sale could provide access to a larger delivery network for Instacart and the resources of a company with a broader consumer platform.
DoorDash has been expanding its reach beyond restaurant meals as it seeks to increase the range of transactions taking place through its platform. Grocery delivery offers a potentially valuable extension because it addresses recurring household needs rather than purchases tied mainly to dining occasions.
Instacart brings an established marketplace that connects consumers with grocery retailers, alongside operational expertise in fulfilling and delivering supermarket orders. Combining that capability with DoorDash’s delivery network could help the companies reach more customers and broaden the range of services available through their respective platforms.
The potential advantages extend beyond adding grocery orders to DoorDash’s business. A broader selection of food and retail services could increase the number of occasions on which customers use the platform, while shared delivery infrastructure and customer relationships could create opportunities to improve efficiency.
The acquisition could also strengthen DoorDash’s position in a market where scale matters but does not automatically guarantee profitability. Delivery platforms must coordinate retailers, merchants, customers, and couriers while managing fulfilment costs, incentives, and service reliability. Grocery orders can involve different operational requirements from restaurant deliveries, including product availability, substitutions, and shopping time.
Therefore, DoorDash would need to establish how much of Instacart’s existing business could be integrated into its operations without disrupting retailer relationships or weakening the service that has made the grocery platform attractive.
Nick Smith, co-founder of growth strategy consultancy Manifesto Growth Architects, said DoorDash appeared to be the more natural buyer because its restaurant-delivery network complements Instacart’s grocery expertise.
“For Uber, the opportunity would be to deepen its position as an everyday convenience platform,” Smith said. “But an acquisition only makes sense if it delivers incremental customer value and profitable growth, not simply greater scale.”
The reported negotiations reflect a wider effort among delivery companies to diversify their businesses and strengthen their competitive positions as the industry matures.
DoorDash has pursued international expansion, including its acquisition of Deliveroo. Uber has also expanded beyond its original ride-hailing business through food delivery and other consumer services, including its acquisition of Postmates. Its broader delivery strategy has involved investments and acquisitions intended to expand its reach across markets and services.
An acquisition of Instacart would give DoorDash a more substantial position in grocery delivery while potentially limiting a rival’s opportunity to acquire the platform. It could also increase competitive pressure on other companies seeking to become a single destination for restaurant meals, groceries, and everyday purchases.
However, the strategic benefits would have to be weighed against the financial demands of the transaction. At a reported valuation of $17 billion, DoorDash would be paying a premium to Instacart’s market capitalization at Friday’s close.
Integration risks would also matter. Grocery retailers may have existing commercial arrangements and technology systems that require careful handling, while customers and merchants could react differently to changes in service, pricing or platform access. Any expected efficiencies would need to be assessed against these operational constraints.
Instacart is also reviewing its own portfolio of businesses. In a separate regulatory filing on Monday, the company said it would wind down its Caper Cart smart shopping-cart business by the end of the second quarter of 2027. It expects to incur pre-tax charges of between $55 million and $80 million as a result.
The decision marks a retrenchment from a technology initiative designed to bring digital capabilities into physical grocery stores. The expected charges will affect the economics of the wind-down, although the filing alone does not reveal the broader reasons behind the decision.
The timing is notable because Instacart is simultaneously exploring a possible sale and discontinuing a business outside its core grocery marketplace. The moves could form part of a wider effort to focus resources, although it would be premature to conclude that the Caper Cart decision is directly connected to the acquisition talks.