DoorDash is closing in on a deal to buy grocery delivery rival Instacart for roughly $17 billion, according to multiple reports citing people familiar with the negotiations.
Quick Take
- DoorDash is in advanced, reportedly exclusive talks to acquire Instacart in a deal valued near $17 billion.
- A source told Reuters a deal could be finalized as soon as Wednesday, though nothing is guaranteed.
- DoorDash stock dropped about 6% on the news while Instacart shares jumped as much as 18%.
- Instacart had also held earlier talks with Uber before DoorDash emerged as the leading buyer.
What The Reports Say Happened
The Wall Street Journal first reported DoorDash was in advanced talks to buy Instacart, pegging the deal’s value at around $17 billion. Reuters later confirmed the talks were advanced, with a source saying an agreement could come together as soon as Wednesday, though the source cautioned there were no guarantees the deal would close. Neither company has confirmed anything publicly.
Semafor described the negotiations as exclusive, meaning DoorDash is reportedly the only serious bidder left at the table. Sources told the outlet a deal is far from certain and could still fall apart, and it could not be determined what price was actually under discussion or how any deal would be structured. That uncertainty hasn’t stopped Wall Street from reacting as if something real is brewing.
How The Market Reacted To The News
DoorDash shares slid about 6% the day the talks became public, a sharp move for a company of its size. Instacart, which trades under the ticker CART, spiked as much as 18% in the same session as investors bet on a buyout premium. The split reaction makes sense. Buyers often pay to win, and that cost typically hits the acquirer’s stock price first.
Analysts at Bernstein noted the market still sees real risk that the deal could collapse before signatures hit paper. That’s a fair read. Big tech mergers get discussed in private for months, sometimes years, before anything is finalized, and plenty never happen.
Why Instacart Was Already Shopping Itself Around
Instacart wasn’t just fielding one offer. The Information reported days earlier that the grocery delivery company was exploring a sale and had held preliminary talks with both DoorDash and Uber. Uber’s interest apparently cooled, leaving DoorDash as the clear frontrunner by the time talks turned serious over the weekend heading into this week.
This isn’t the first time these two companies have circled each other. Back in 2021, DoorDash and Instacart discussed a merger that fell apart when DoorDash walked away and chose instead to build its own grocery business from scratch. History suggests these talks can move fast and still die on the vine, so the current urgency doesn’t guarantee a signed contract this time either.
What A Combined Company Would Mean For Shoppers
Analysts say the strategic logic is straightforward: DoorDash and Instacart together would better compete with Walmart and Amazon, both of which have poured billions into same-day grocery and retail delivery. Scale matters in this business. More riders, more warehouses, and more retail partnerships translate into faster deliveries and lower costs per order, which is exactly what keeps subscribers paying monthly fees.
For everyday families relying on grocery delivery, a merger could mean fewer apps to choose from but potentially better service. It could also mean fewer competitors fighting for customers, which sometimes leads to higher prices once the dust settles. Regulators reviewing any deal of this size will almost certainly weigh that tradeoff closely, given how dominant both platforms already are in American grocery delivery.
What Comes Next For Both Companies
No agreement has been signed as of this reporting, and both companies have stayed quiet publicly. Investors are watching closely ahead of DoorDash’s upcoming earnings report, which could bring more clarity on where talks stand. A deal this size would also likely draw scrutiny from antitrust regulators before anything closes, given the overlap between the two platforms’ grocery delivery businesses.
🚨 $DASH IS REPORTEDLY IN ADVANCED TALKS TO ACQUIRE $CART
DoorDash is negotiating to acquire Instacart, with a potential deal as soon as this week, according to the Wall Street Journal.
Key details:
• Talks with $UBER have reportedly ended.
• The deal would combine… pic.twitter.com/SXV4mA4nmU— Rocket Terminal (@RocketTerminal) October 28, 2026
For now, the facts are clear even if the outcome isn’t. DoorDash wants Instacart, the price tag is around $17 billion, and Wall Street is already betting on whether this long-rumored pairing finally becomes official.
Sources:
investors.com, perplexity.ai, finance.yahoo.com, abcmoney.co.uk, cp24.com, insideretail.us
