DoorDash in Talks to Acquire Instacart in Potential $17 Billion Deal
The proposed acquisition would bring together two San Francisco-based delivery companies amid growing competition for online grocery customers.
By A.T.L. N.E.W.S. Staff | October 27, 2026
CALIFORNIA NEWS | BUSINESS
SAN FRANCISCO — DoorDash is reportedly in advanced talks to acquire fellow San Francisco-based company Instacart in a deal that could value the grocery-delivery platform at approximately $17 billion. If an agreement is reached and completed, the acquisition would bring two major players in the delivery industry under the same corporate umbrella.
A person familiar with the discussions told Reuters that an agreement could be finalized as soon as Wednesday, October 28. However, the source cautioned that there is no guarantee the negotiations will result in a deal.
The potential purchase comes as delivery companies look beyond restaurant orders for growth and compete for customers who increasingly use apps to shop for groceries, household goods and other retail products. For DoorDash, an acquisition could bring Instacart’s grocery marketplace and relationships with retailers together with DoorDash’s existing delivery network and customer base.
A Growing Battle for Grocery Delivery
DoorDash built its name delivering restaurant meals, but the company has expanded into grocery and retail delivery. Instacart, meanwhile, has established itself as a grocery-focused platform where customers can order from participating stores and have shoppers select and deliver their items.
The possible combination would come as both companies face competition from major retailers and technology companies. Analysts cited by MarketWatch said a deal could help the businesses compete with Walmart and Amazon, both of which have invested heavily in online grocery services.
Instacart had also held preliminary discussions with Uber as it explored a possible sale, according to earlier reporting. Those talks are no longer active, the source familiar with the negotiations told Reuters.
What Could It Mean for Customers and Workers?
For customers, a purchase could eventually affect how they order groceries and other goods, but it is too early to know whether the companies would combine their apps, change subscription plans or adjust delivery fees. Neither company has announced terms for an acquisition or a plan for integrating the services.
The discussions also raise questions for the shoppers and drivers who rely on the platforms for work. Any changes to pay, delivery opportunities or how orders are assigned would depend on the terms of a deal and decisions made afterward; no such changes have been announced.
Because DoorDash and Instacart both offer grocery delivery, any agreement could attract scrutiny from regulators examining its effect on competition. Reuters previously reported that regulatory concerns helped derail earlier acquisition talks between the companies in 2021.
Investors React
The reports prompted different reactions on Wall Street. Instacart shares rose approximately 8% during regular trading Monday, while DoorDash shares fell about 6%, according to Reuters. Instacart had a market value of approximately $13 billion as of Friday’s close, before the latest report about advanced talks.
Instacart declined to comment when contacted by Reuters, while DoorDash did not immediately respond. Until an agreement is announced, the reported purchase price and timeline remain subject to change, and the talks could end without a sale.
