DoorDash acquires grocery delivery platform Instacart for $17B
What's the story
DoorDash has announced its intention to acquire US-based grocery delivery service, Instacart, for a whopping $17 billion. The move highlights the growing competition in the app-based platform space and the need for companies to expand through strategic mergers. The deal comes at a time when DoorDash's shares have struggled this year, while Instacart's stocks have surged by nearly 30% so far this year.
Market trends
Mergers and acquisitions gaining momentum in the delivery space
The pandemic-induced slowdown in orders and rising operational costs have triggered a wave of mergers and acquisitions in the industry.
Just Eat Takeaway bought Grubhub for $7.3 billion, while Uber acquired Delivery Hero for $15 billion earlier this year.
These deals highlight how companies are diversifying into grocery and retail sectors as restaurant delivery services mature.
Company outlook
Instacart's stock performance and operational changes
Instacart, also known as Maplebear, saw its shares hit a record high of $62 on Monday after news of DoorDash's acquisition talks.
The company is winding down its Caper Cart smart shopping-cart business by the end of Q2 2027 with expected pre-tax charges between $55 million and $80 million.
This move comes as part of Instacart's strategy to streamline operations amid growing competition in the grocery delivery space.
Growth strategy
DoorDash's expansion into grocery and retail deliveries
Once a restaurant delivery platform, DoorDash has expanded its services to include grocery and retail deliveries.
In September 2025, it expanded its partnership with Kroger to add nearly 2,700 grocery stores on its platform.
Other retail partners include Macy's and CVS, among other national chains.
This expansion is part of DoorDash's strategy to diversify its offerings amid increasing competition in the food delivery space.