DoorDash Talks to Buy Instacart Put Potential Deal Value at $17 Billion
Key Facts
DoorDash is in advanced talks to buy Instacart in a deal valued at about $17 billion, The Information reported on October 26, citing people familiar with the matter. The newspaper said an agreement could be announced within days if negotiations do not collapse, while Semafor reported that the talks are exclusive. But the reports do not mean a definitive agreement has been reached; Semafor said the deal is uncertain and the talks could fall apart, and it could not determine the price or structure of the deal. Instacart declined to comment, and the reports did not say either company had announced an agreement. The $17 billion figure therefore remains a media estimate attributed to people familiar with the matter, not a price announced by the two sides.
Reuters reported, citing a source familiar with the matter, that the deal could be concluded as soon as Wednesday, though there was no guarantee it would be completed. The source added that Instacart's talks with Uber were no longer active. Instacart had earlier explored a sale and held preliminary talks with potential buyers including Uber and DoorDash, according to a report by The Information cited by Reuters on October 23. The reported shift from preliminary discussions to exclusive, advanced negotiations marks a change in the course of the sale process, but does not determine its outcome. Wednesday remains a possibility cited by the source, not a confirmed date for announcing a deal.
The potential deal would bring together two complementary home-delivery businesses: Instacart's platform focused on grocery stores and DoorDash's platform focused on restaurants, according to Semafor. The newspaper said combining the platforms could create a large home-delivery company in a market where both companies face strong competition, particularly from Amazon and Walmart. That places DoorDash's potential expansion into groceries in the context of existing competition, while combining the platforms would offer a broader range of services, according to Semafor's analysis. This describes what the deal could enable, however, and is not a stated goal of DoorDash or Instacart. Neither company has yet announced details of the scope of a merger or how it might be carried out.
The reports give different estimates of Instacart's value: Semafor valued the company at about $12 billion and said a conservative premium could lift the sale value to about $15 billion. The Information, meanwhile, reported an estimate of nearly $17 billion for the potential deal. These figures reflect different media estimates, and the companies have announced no price that could be considered final. Instacart's market capitalization was about $13 billion at the close on Friday, October 23, according to Reuters. The figures in circulation therefore put the potential deal above the market capitalization recorded at that close, while the gap between media estimates remains.
The companies have a history of prior acquisition talks: Semafor said DoorDash made an offer to buy Instacart in 2021, when the company's estimated value was much higher. Those talks collapsed over a disagreement on price and concerns about antitrust objections, according to the newspaper. The earlier process brings valuation and regulatory review back into focus as the two sides return to advanced negotiations, without implying that the same factors will determine the current round. The current reports gave no outcome of a regulatory review or position from the relevant authorities. The regulatory concerns that accompanied the earlier talks remain part of the backdrop to the potential deal, not a decision on it.
The negotiations follow strong growth reported by both companies in the second quarter of 2026. Instacart recorded gross transaction value of $10.351 billion, up 14% year over year, and revenue of $1.043 billion, up 14%, according to its published results. Chief Executive Chris Rogers said the company had accelerated its growth over the previous three quarters, citing 14% year-over-year growth in gross transaction value in the second quarter. DoorDash's Marketplace GOV reached about $33.1 billion, up 36% year over year, while orders rose 27% to 970 million. The results show the scale of activity the two sides could combine, while any financial impact from the deal remains contingent on its completion and terms, which have not been announced.
In trading on October 26, Instacart shares rose about 8% and DoorDash shares fell nearly 6%, Reuters reported. Earlier, Instacart shares jumped 9.2% to $56.44 at the close on Friday, October 23, after reports that the company was exploring a potential sale, according to Bloomberg Law. DoorDash shares closed at $193.53 on October 19, then $191.67 on October 20, $184.45 on October 21, $185.94 on October 22 and $179.38 on October 23, according to EL7 data. That close preceded the report of advanced talks published on October 26, so it does not represent the stock's reaction to that report. The next potential development is a conclusion to the talks or their collapse, as Reuters reported that an agreement could be reached as soon as Wednesday, without guarantees.