DoorDash is in advanced talks to acquire Instacart in a deal that could value the grocery-delivery platform at about $17 billion, a source familiar with the matter told Reuters on Monday.
A deal may be finalized as soon as Wednesday, although there are no guarantees it will come together, the person said. Instacart’s deal talks with Uber are no longer active, the person added.
Shares of Instacart, which had a market value of about $13 billion as of Friday’s close, rose about 8% in regular trading, while DoorDash fell around 6%.
The Wall Street Journal first reported the developments on Monday.
The food delivery industry has been grappling with rising labor costs, tighter regulation of delivery workers and growing competition after the pandemic-driven boom in online ordering faded.
The potential deal comes as delivery companies expand into grocery and retail to drive growth beyond restaurant delivery, with DoorDash buying Deliveroo and Uber acquiring Postmates and Delivery Hero.
If successful, the acquisition of Instacart would give DoorDash access to the platform’s established marketplace and retailer ties, which it could combine with its own vast delivery network and customer base.
The grocery platform has been exploring a possible sale and has held preliminary discussions with potential buyers including Uber and DoorDash, the Information reported on Friday, citing people familiar with the matter.
Instacart declined to comment when contacted by Reuters, while Uber and DoorDash did not immediately respond.
“Strategically, DoorDash looks like the more natural fit for Instacart, given the complementary strengths of its restaurant delivery network and Instacart’s grocery expertise,” said Nick Smith, co-founder of growth strategy consultancy Manifesto Growth Architects.
“For Uber, the opportunity would be to deepen its position as an everyday convenience platform. But an acquisition only makes sense if it delivers incremental customer value and profitable growth — not simply greater scale.”
Separately, Instacart said in a regulatory filing on Monday it would wind down its Caper Cart smart shopping-cart business by the end of the second quarter of 2027, expecting pre-tax charges of $55 million to $80 million related to the move.