DoorDash to Acquire Instacart in $17 Billion Deal, Raising Antitrust Concerns

DoorDash has announced an agreement to acquire Instacart in a deal valued at $17 billion, a move that would significantly reshape the landscape of online food and grocery delivery in the United States and Canada.

The transaction, however, is subject to approval from government regulators and Instacart's shareholders and is not expected to close until late 2027 or 2028.

Instacart, founded in 2012, has focused on delivering groceries and convenience store items, while DoorDash has primarily concentrated on restaurant deliveries. The combination aims to create a more comprehensive delivery platform. According to DoorDash, the Instacart app will continue to operate independently following the acquisition, and its network of 600,000 contract shoppers will remain in place.

For consumers, the merger could lead to a single subscription fee for both services, potentially replacing the separate monthly memberships customers currently pay for DoorDash and Instacart. Experts suggest that the increased competition from major players like Walmart and Amazon in the online grocery sector may limit the likelihood of significant fee increases.

Market Landscape and Strategic Rationale

The online grocery market is experiencing substantial growth, with projections indicating an annual increase of over 8 percent through the end of the decade. This burgeoning market, valued in the hundreds of billions of dollars, has become a key battleground for both traditional retailers and e-commerce giants.

Apoorva Mehta, Instacart's founder, stated that he and DoorDash co-founder and CEO Tony Xu had long discussed combining their companies, citing clear industrial logic. Mehta noted that groceries and restaurant deliveries each address different aspects of a customer's weekly meal planning, and bringing them together offers a more complete solution.

Projections estimate that by 2026, over 157 million online shoppers will spend $364 billion on groceries. Walmart is anticipated to lead this market with $87 billion in online grocery sales, followed by Amazon with $51 billion. Instacart is expected to be the third-largest player, with an estimated $42 billion in grocery sales.

Retail experts believe the deal could benefit consumers through a unified fee structure offering loyalty perks across both platforms. Grocers may also benefit by gaining a competitive advantage in convenience against Amazon and Walmart.

DoorDash expanded into grocery delivery during the pandemic, initially facing caution from some supermarket partners. However, the company has since expanded its partnerships, now offering full inventory delivery from Kroger's U.S. stores and from Costco.

Consumer Concerns and Antitrust Scrutiny

Consumer advocates have voiced concerns that the consolidation of major delivery networks could diminish competition, potentially leading to increased markups and fees. Samuel Levine, head of New York City's Department of Consumer and Worker Protection, expressed that the merger continues a trend of corporate consolidation that can disadvantage workers and consumers.

Many consumers may not be fully aware of the markups, which can range from 10 to 20 percent above in-store prices for grocery items. A more consolidated market could provide the merged entity with greater pricing power.

Studies have highlighted the cost differences in grocery delivery. A comparison of a 15-item basket from a Washington, D.C. Costco found in-store costs of $319. The same basket ordered via Uber Eats was $373, via DoorDash was $378, and via Instacart was $419, including taxes and fees. Instacart's pricing analysis showed a 27 percent markup on the items themselves before taxes and fees, and a 32 percent increase after taxes and fees compared to the in-store price.

Instacart has also been noted for its use of dynamic pricing, where prices for the same items can vary among customers based on data about their habits and preferences. A test conducted in 2025 across four cities found that nearly three-quarters of items on Instacart were offered at different price points to various shoppers, with average differences of 13 percent and some as high as 23 percent.