The $17 billion acquisition countdown begins: DoorDash (DASH.US) plans to acquire Instacart to enter the home shopping battlefield, with an official announcement as early as Thursday.

Media reports citing people familiar with the matter said DoorDash's (DASH.US) plan to acquire Instacart could be announced as early as Thursday morning Eastern Time. Speculation about the deal began heating up last week, when The Information reported that Instacart was exploring a sale and had approached companies including Uber and DoorDash. On Monday, multiple media outlets reported that DoorDash was in advanced talks to acquire Instacart in a deal that could value Instacart at about $17 billion. In after-hours trading on Wednesday, Instacart shares rose about 4%, while DoorDash shares fell less than 1%. Instacart declined to comment. A DoorDash representative did not immediately respond to a media request for comment. Acquiring Instacart would expand DoorDash's business in the online grocery delivery market. DoorDash started with restaurant delivery and has since gradually brought more retailers onto its platform, including Sephora, Macy's, Inc., Staples and Anthropologie. After announcing a partnership with Kroger Co. last year, DoorDash has continued to add more regional grocery retailers in recent months. Instacart went public in 2023 and was once one of the biggest beneficiaries of the pandemic-driven surge in demand for grocery delivery services, but it has since struggled to sustain that growth momentum. In December, Instacart agreed to pay $60 million to settle with the U.S. Federal Trade Commission over allegations including misleading users through false advertising and using "illegal subscription enrollment" practices. The service also faces increasingly intense competition from companies such as Amazon.com, Inc. and Walmart Inc. After slowing the expansion of its physical grocery retail business, Amazon.com, Inc. has stepped up investment in online grocery and is using its vast fulfillment network to speed up delivery of household essentials, everyday pantry foods and perishable items. Amazon.com, Inc. and Walmart Inc. have both further expanded same-day and next-day delivery services, posing a threat to Instacart's on-demand delivery model. Analysts noted that given the overlap between the two companies' businesses, a potential merger between Instacart and DoorDash could trigger antitrust review. Wedbush analysts wrote in a research report on Monday that third-party delivery platforms "still account for a relatively small share of total grocery spending, but approval could be more difficult if regulators further narrow the online market or examine the deal from the perspective of grocery retailers that are enterprise customers." The $17 billion acquisition countdown begins: DoorDash seeks a gateway to household shopping The core intent behind DoorDash's planned acquisition of Instacart can be described as extending the user gateway and delivery network built through restaurant delivery into the larger household grocery shopping scenario. The deal news began with Instacart exploring a sale and contacting potential buyers including Uber and DoorDash; by October 26, multiple media outlets reported that the two sides had entered advanced talks, with the potential deal valued at about $17 billion. The core strategic logic of DoorDash's effort to acquire Instacart can be described as seeking to rely on the user gateway and delivery network built through restaurant delivery to further deepen its layout in the household grocery "online selection, picking and one-click delivery" shopping scenario, and to expand room for retailer technology services and advertising monetization. Soon afterward, media reports citing people familiar with the matter said the acquisition could be announced as early as Thursday morning, October 29, U.S. time, but this remains an expectation disclosed by sources and does not mean the deal has been signed or completed. Instacart rose about 4% in after-hours trading while DoorDash fell less than 1%, reflecting that the market has begun separately pricing the acquisition premium for the target and the acquisition costs and integration responsibilities the buyer may bear. At the same time, the competitive backdrop in focus is also clear: Amazon.com, Inc. and Walmart Inc. continue to strengthen same-day and next-day delivery and are competing for consumers' daily food and household supply purchasing needs, pushing independent delivery platforms to seek greater business scale and service depth. One connects local consumption, the other goes deep into grocery operations: what is being bought is more than delivery orders DoorDash's main business is a local commerce platform and instant delivery: consumers buy restaurant food, groceries and other retail goods through the platform, and the company connects merchants and delivery workers and monetizes through merchant commissions, consumer service fees, DashPass membership and advertising, while also providing merchants with white-label ordering, delivery and operating tools. Instacart, by contrast, is more deeply embedded in the grocery retail system. Its businesses include a consumer-facing grocery shopping platform (Instacart Marketplace), an enterprise platform that helps retailers operate online stores and fulfillment (Instacart Enterprise), and an advertising business serving consumer brands and retailers (Instacart Ads). Grocery orders involve a large number of products, out-of-stock substitutions, fresh produce selection and matching different specifications, and their operational requirements differ from restaurant pickup and delivery; therefore, what DoorDash is eyeing includes not only Instacart's consumer and retailer relationships but also product data, picking and fulfillment experience and retail technology. Advertising deserves particular attention: Instacart disclosed that advertising and other revenue exceeded $1 billion in 2025, meaning the potential acquisition target already has an important monetization channel beyond delivery services. If the deal is completed, DoorDash is expected to simultaneously expand consumption scenarios, deepen merchant services and enhance retail advertising capabilities. Restaurant users can be directed to grocery shopping, and Instacart's household purchasing users may also increase other local consumption; if membership benefits, customer acquisition spending and fulfillment resources can be effectively coordinated, the platform will have an opportunity to increase its share of user spending, reduce repeated customer acquisition costs and allow more transactions to generate additional revenue through advertising and merchant tools. However, these are potential post-merger synergies, and for now simply adding orders together cannot be directly equated with higher profit. Regulatory approval also affects the value of the deal: according to Wedbush's analysis, even if third-party delivery still accounts for a small share of total grocery spending, if regulators focus on a narrower online delivery market or assess the deal from the perspective of retailers choosing technology and fulfillment service providers, they may still find a high concentration problem; the real main line worth watching in the deal is whether DoorDash can convert a broader consumption gateway into sustained profitability, rather than simply becoming a larger delivery platform.