DoorDash in Advanced Talks to Buy Instacart at About $17 Billion, Sources Say, With Deal Possible This Week

Since The Information reported on Friday that Instacart was exploring a sale, the picture has narrowed to one suitor. DoorDash is in advanced talks to acquire the grocery-delivery company, and the deal could be finalized as soon as Wednesday, according to a person familiar with the matter who spoke to Reuters. The Wall Street Journal first reported the developments Monday, Oct. 26.

The price under discussion is about $17 billion. Instacart's market value was about $13 billion as of Friday's close. When The Information first reported the sale exploration, it said a typical takeover premium of 30 to 40 percent would value Instacart at roughly $16 billion to $17 billion, based on recent public technology deals.

The source stressed there are no guarantees. The Journal's report said the deal could be completed this week only if the talks do not collapse.

Uber is out

Uber, the other bidder named last week, is no longer in the picture. Bloomberg reported Friday, citing a person familiar with the matter, that Uber walked away. The Reuters source said Monday that Instacart's talks with Uber are no longer active.

Instacart declined to comment. DoorDash and Uber did not immediately respond to Reuters' requests for comment.

How the stocks moved

Instacart shares rose about 8% in regular trading Monday, with one report putting the gain at 8.7%. DoorDash shares fell between 5.5% and 6%.

DoorDash is valued at about $78 billion.

The price is far below what was once on the table. In 2021, DoorDash held talks to buy Instacart at a valuation of $40 billion to $50 billion. Those talks fell apart over doubts that the Biden administration would approve the deal on antitrust grounds.

Why Instacart is selling

Instacart went public in September 2023 at a valuation of about $10 billion. Its shares are up about 70% from the IPO price, but Wells Fargo analyst Ken Gawrelski noted that the stock has trailed the Nasdaq by 18 points over that stretch. "Markets have not rewarded what we view as solid fundamental execution," he said.

Growth has slowed. Instacart's advertising business, its push beyond grocery, saw revenue growth fall to 11% in both 2024 and 2025, from 19% in 2023.

The competition is getting tougher. Amazon is expanding Amazon Now, which delivers groceries and essentials in 30 minutes or less. Uber Eats and DoorDash are pushing deeper into grocery and convenience delivery. Last year Instacart cut the minimum order for free delivery for Instacart+ members to $10.

Emarketer analyst Zak Stambor said Instacart "risks getting squeezed between retailers building their own digital channels and larger platforms that can bundle grocery with other services."

The antitrust question

A DoorDash-Instacart combination would bulk up two of the biggest food-delivery platforms in the U.S. Reuters reported that either a DoorDash or Uber deal could draw antitrust scrutiny, in a market that has already seen a wave of consolidation. DoorDash bought Deliveroo, and Uber bought Postmates and agreed in July to a nearly $15 billion deal for Germany's Delivery Hero.

Analysts cited in the reporting see a strategic logic that cuts the other way. They generally view a DoorDash-Instacart combination as the most formidable answer to the growing grocery-delivery presence of Amazon and Walmart. Nick Smith of Manifesto Growth Architects said DoorDash "looks like the more natural fit," given its restaurant delivery network and Instacart's grocery expertise.

Stambor called a deal plausible because the Trump administration has shown "greater willingness" to approve deals. He added that approval "could come at the cost of selling off parts of the business."

Caper Cart shut down

Separately, Instacart said in a regulatory filing Monday that it will wind down its Caper Cart smart-cart business by the end of the second quarter of 2027. The cart uses cameras, sensors and AI to recognize items and show a running total. Instacart expects pre-tax charges of $55 million to $80 million related to the move.

The immediate test is Wednesday. If DoorDash and Instacart announce an agreement at around $17 billion, any deal would be expected to face antitrust scrutiny. DoorDash shareholders will also be watching whether the roughly 6% drop deepens once a price is on paper.