DoorDash is in advanced talks to acquire grocery delivery company Instacart in a transaction that could value the company at approximately $17 billion, according to The Wall Street Journal.
The companies could reach an agreement as soon as this week, although negotiations remain ongoing and there is no guarantee a transaction will be completed.
A combination would unite two of the largest U.S. delivery platforms and substantially expand DoorDash’s presence beyond its traditional restaurant delivery business.
Instacart operates a grocery-focused marketplace that connects consumers with supermarkets and other retailers, while DoorDash has been expanding aggressively into grocery, convenience, retail, and other local commerce categories.
DoorDash currently works with retailers including Kroger, Safeway, Aldi, Macy’s, CVS, and Target as it seeks to increase the range of products available through its platform.
Instacart, officially Maplebear, had a market capitalization of approximately $13 billion before reports of the advanced negotiations emerged. The proposed $17 billion valuation would therefore represent a meaningful premium.
Instacart shares rose sharply following reports of the talks, while DoorDash shares declined.
The discussions follow earlier reports that Instacart had explored a potential sale and held preliminary talks with both DoorDash and Uber. However, discussions involving Uber are reportedly no longer active.
DoorDash and Instacart also explored a potential combination in 2021, when Instacart was valued significantly higher. Those discussions ultimately did not result in a transaction.
A deal today would give DoorDash greater scale in grocery delivery and deepen its relationships with retailers as companies including Walmart and Amazon continue expanding their online grocery and same-day delivery operations.
Instacart would bring DoorDash an established network of grocery partners, shoppers, advertising capabilities, and consumers, while DoorDash would contribute its large logistics network and restaurant-focused customer base.
The reported negotiations come as delivery companies increasingly seek growth outside restaurant delivery and expand into broader local commerce categories.
