DoorDash in Talks to Buy Instacart for $17 Billion: Instacart Jumps 8%, DoorDash Falls 6%

DoorDash is in advanced talks to acquire Instacart in a deal that could value the grocery-delivery platform at about $17 billion, according to reports first published by The Wall Street Journal and confirmed to Reuters by a source familiar with the matter. Instacart shares rose about 8% on Monday, while DoorDash shares fell around 6%.

What happened?

The Journal reported on Monday, October 26, that DoorDash is in advanced talks to buy its delivery rival Instacart, and that a deal could be finalized as soon as this week. Reuters, citing its own source familiar with the matter, reported the same valuation and timing, adding that a deal may be finalized as soon as Wednesday. Both reports stress the same caveat: there are no guarantees the talks will produce a deal.

Instacart, whose parent is Maplebear Inc. and which trades as CART, went public in 2023. It had a market value of about $13 billion as of Friday's close, before the reports lifted the stock. DoorDash, trading as DASH, has a market value of around $73 billion. Neither company has announced a deal. Reuters reported that Instacart declined to comment, while DoorDash and Uber did not immediately respond to requests for comment.

Why is this blowing up?

The size and the history are what make this story travel. A $17 billion valuation would be a substantial premium to Instacart's roughly $13 billion market value before the news, and market coverage noted a typical premium could imply about $65 a share. The stocks told the usual takeover story: the target rose, the buyer fell.

The two companies have been linked before. In 2021, when Instacart was privately valued at $39 billion, preliminary talks could have valued it at $40 billion to $50 billion before collapsing amid antitrust concerns. Instacart later went public on its own in 2023, at a far lower valuation.

The latest talks also follow a separate report last week. The Information reported on Friday that Instacart was exploring a possible sale, had engaged advisers, and had held preliminary discussions with prospective buyers including DoorDash and Uber. Reuters reported that account on October 23, noting Instacart shares closed about 9% higher that day. The Journal and Reuters now report that Instacart's talks with Uber are no longer active.

Key facts

Reported value: About $17 billion for Instacart, according to the Journal and a Reuters source.

Timing: A deal could be finalized as soon as this week, possibly as soon as Wednesday, according to the reports — with no guarantee.

Market reaction on Monday: Instacart rose about 8% in regular trading; DoorDash fell around 6%; Uber closed nearly 1% lower in market coverage of the session.

Starting values: Instacart was valued at about $13 billion as of Friday's close; DoorDash at around $73 billion.

What Instacart does: Its core business is online grocery shopping and delivery from retailers. DoorDash began in restaurant delivery, dominates that space in the United States, and already delivers groceries and retail goods for chains including Kroger, Safeway and Aldi, plus brands such as Macy's, CVS and Target.

Status: This is a reported negotiation, not an announced merger. No terms, financing, or regulatory filing have been disclosed by the companies.

Why would DoorDash want Instacart?

Reuters put the logic plainly: buying Instacart would give DoorDash its established grocery marketplace and retailer relationships, combined with DoorDash's own delivery network. The wider industry faces rising labor costs, tighter regulation, and tougher competition after the pandemic ordering boom faded, and delivery firms have expanded into grocery and retail for growth — DoorDash bought Deliveroo, and Uber acquired Postmates.

The risk is also clear. A combination of the dominant U.S. restaurant-delivery company with the leading independent grocery platform would be expected to draw close antitrust scrutiny — the concern that helped end the 2021 talks — and Walmart and Amazon have become stronger grocery challengers since then, according to the Journal.

What's next?

The next step is confirmation, or a denial, from the companies themselves. If the reports are accurate, an announcement could come within days; if the talks stall, both stocks could retrace Monday's moves just as quickly. Until a company filing or press release appears, readers should treat the $17 billion figure as a reported valuation from unnamed sources, not as agreed terms. This post reports what happened and how markets reacted; it is not financial advice.

Sources

The Wall Street Journal — DoorDash Is in Advanced Talks to Acquire Delivery Rival Instacart
Reuters via WNCY — DoorDash in talks to buy Instacart in roughly $17 billion deal, source says
Reuters — DoorDash in talks to buy Instacart, WSJ reports
TradingView / Stocktwits — CART Stock Jumps As DoorDash Acquisition Talks Reportedly Heat Up

FAQ

Has DoorDash bought Instacart?

No. DoorDash is reported to be in advanced talks to acquire Instacart, but no deal has been announced by either company and the reports say there is no guarantee one will happen.

How much could the deal be worth?

About $17 billion, according to The Wall Street Journal and a source who spoke to Reuters. That compares with Instacart's market value of about $13 billion as of Friday's close.

How did the stocks react?

Instacart shares rose about 8% on Monday, October 26, while DoorDash shares fell around 6% on the reports.

When could a deal be announced?

Possibly as soon as this week — Reuters' source said as soon as Wednesday — if the talks do not fall apart, according to the reports.