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- calendar_today October 29, 2026
DoorDash Announces $17 Billion Bid to Acquire Instacart
DoorDash has announced an offer to acquire Instacart for $17 billion, targeting a significant consolidation in the grocery delivery sector. The proposed acquisition would unite two major competitors and potentially reshape the structure of grocery delivery in the United States and Canada.
Maintaining Instacart's Brand and Services
According to DoorDash, if the deal goes forward, the Instacart brand name and app will remain in operation. Instacart's network of shoppers, who fulfill orders as independent contractors, would be able to continue operating as they have been. Grocers will have the option to work with either DoorDash or Instacart, providing flexibility within the new, combined company. Instacart customers may also benefit from increased access, with the companies stating that customers will now be able to shop from 50,000 more stores currently covered by DoorDash.
Instacart and DoorDash: Company Overviews
Instacart, established in 2012, focuses on grocery and convenience store delivery throughout the U.S. and Canada. Instacart relies on around 600,000 independent Instacart shoppers to fulfill orders and reported 338 million completed orders last year. Instacart currently has a market value of approximately $14 billion.
DoorDash, founded in 2013 in San Francisco, initially built its reputation as a restaurant delivery platform but soon diversified into other areas, such as pet food and electronics delivery. DoorDash now operates in forty countries, having completed over 3 billion orders last year with a network of 9 million independent delivery workers and a market value of $73 billion.
Expanding Grocery Delivery and Partnerships
DoorDash entered the grocery delivery market in 2020, capitalizing on a surge in pandemic demand. Early on, many grocery retailers were cautious. Kroger, one of the largest U.S. grocery chains, initially restricted their DoorDash partnership to flowers, sushi, and a limited selection of prepared foods. However, by fall 2023, this partnership expanded to include the full inventory of all 2,700 Kroger stores nationwide in DoorDash’s online marketplace.
In recent developments, DoorDash expanded further by launching Costco delivery in May 2024. These strategic moves underscore DoorDash’s ambitions for doordash growth beyond its original restaurant delivery model.
Combining Strengths in Grocery Logistics
Tony Xu, DoorDash’s co-founder and CEO, stated that the acquisition is intended to blend Instacart’s grocery expertise with DoorDash’s logistics and delivery systems. “Grocery is one of the hardest things to get right online. Someone has to pick a ripe avocado, find a substitute you’d choose yourself, and get the ice cream to you before it melts,” Xu noted. He emphasized that the merger would give retailers of every size better tools, thereby unlocking further potential in grocery logistics and delivery.
Market Share Shifts and Uncertain Partnerships
The delivery consolidation reflects broader trends in market share. According to Consumer Edge, Instacart’s share of U.S. delivery platform spending has declined from 26% to 18% over five years. In the same period, DoorDash grew its share from 44% to 59%, while Uber Eats remained steady at just under 20%. Instacart’s declining market share comes amid DoorDash’s aggressive expansion.
The deal leaves some questions unanswered, particularly regarding current delivery partnerships. For instance, Instacart currently offers delivery from Walmart, but DoorDash ended its Walmart delivery service in 2022. It remains unclear how such partnerships will be affected if the acquisition proceeds.
Source: whdh.com.
