DoorDash in Advanced Talks to Acquire Instacart for $17 Billion

DoorDash is in advanced talks to acquire grocery delivery platform Instacart in a deal that could value the company at approximately $17 billion, according to reports from The Wall Street Journal and Reuters. The discussions, first reported on Monday, October 26, 2026, suggest a deal could be finalized as soon as this week, with one source telling Reuters that an agreement might come as early as Wednesday. However, sources cautioned that a final agreement is not guaranteed.

Market Reaction and Valuation

Following the reports, Instacart shares rose roughly 8 percent during regular trading on Monday, while DoorDash shares fell approximately 6 percent. Instacart, which went public in 2023, had a market value of approximately $13 billion at the close of trading on the preceding Friday. DoorDash’s market capitalization was reported at about $73 billion prior to the news.

Citi analyst Ronald Josey noted in a note that a $16 billion to $17 billion valuation implies about $65 per Instacart share at the midpoint, which is 7 percent above the October 26 close. Rosenblatt analyst Scott Devitt pointed out that DoorDash reported about $5 billion in cash as of its June quarter, meaning the deal would require a "sizable" equity component.

Strategic Shifts and Industry Consolidation

The potential acquisition would combine DoorDash’s delivery network with Instacart’s grocery marketplace and retailer relationships. Instacart connects more than 2,200 retail banners representing almost 100,000 stores, while DoorDash serves 44 of the top 100 U.S. retailers alongside its restaurant partners.

Michael Gunther, senior vice president of research and market intelligence at Consumer Edge, said the trends partly reflect DoorDash expanding into grocery, convenience, and other retail categories. "The boundaries between restaurant, grocery and broader retail delivery have become increasingly blurred," Gunther said.

Data from Consumer Edge shows DoorDash’s share of the delivery market rose from approximately 44 percent in the second quarter of 2021 to nearly 59 percent in the third quarter of 2026. During the same period, Instacart’s share fell from approximately 26 percent to 18 percent.

Regulatory and Competitive Context

This is not the first time the two companies have discussed a merger. In 2021, DoorDash reportedly discussed buying Instacart for $40 billion to $50 billion, but those talks fell apart partly over regulatory concerns. Analysts note that a takeover by a major rival would likely draw regulatory scrutiny again.

Instacart previously had active discussions with Uber, but those talks are currently dormant, according to Reuters. Uber has not commented publicly on the matter. The industry has seen significant consolidation recently, with Uber announcing an agreement to acquire Germany-based Delivery Hero for $14.8 billion and DoorDash completing its acquisition of Deliveroo in 2025.

Why it matters

The potential deal represents a significant consolidation in the U.S. grocery delivery market, moving beyond the global expansion strategies seen in recent years. For DoorDash, acquiring Instacart would provide a larger foothold in grocery and access to Instacart’s advertising business and storefront technology. However, investors have reacted negatively to the prospect, with DoorDash shares declining due to concerns about dilution and the integration of a slower-growing business. DoorDash’s revenue rose 28 percent to $13.72 billion in 2025, while Instacart’s revenue rose 11 percent to $3.74 billion.

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Sources

• finance.yahoo.com: DoorDash in Talks to Acquire Instacart in Potential $17 Billion Deal
• qz.com: DoorDash in advanced talks to buy Instacart for about $17 billion
• foxbusiness.com: DoorDash reportedly in advanced talks to acquire Instacart | Fox Business
• 247wallst.com: DoorDash Is Close to Buying Instacart for $17 Billion After Uber Walked Away - 24/7 Wall St.
• investors.com: Why DoorDash Stock Fell After Reports Of $17 Billion Instacart Acquisition Talks | Investor's Business Daily

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.