DoorDash Reportedly in Advanced Talks to Buy Instacart

DoorDash is in advanced talks to buy Instacart in a deal that would value the grocery delivery company at roughly $17 billion, according to a report from The Wall Street Journal. Advanced talks are a step short of an agreement, and nothing in the report guarantees that a deal will be signed, so the outcome remains open.

The logic behind the possible combination is easy to see. DoorDash built its business on restaurant orders and has spent years trying to win a larger share of groceries. Instacart already has the grocery relationships, the shopper network and the advertising business that come with them. Owning both would put one company at the center of a much larger share of everyday household purchases.

Analysts framing the story describe the deal less as an opportunity and more as a defensive move. Walmart has expanded its own delivery and store-based fulfillment, and Amazon has steadily tied grocery purchases to its Prime membership and same-day service, backed by its ownership of Whole Foods. Both companies have the scale to absorb heavy delivery costs for years. Independent delivery firms do not, and a merger could cut overlap in driver networks, marketing budgets and partner contracts.

That same overlap is also a source of risk. Instacart works with many retail chains rather than running its own stores, so its value depends on keeping those partners satisfied, and some of them may worry about a combined company gaining more leverage over pricing and fees. A transaction of this size would also likely draw regulatory review, since regulators have been watching consolidation in local delivery and grocery closely.

For now, the central fact is the reported price tag and the stage of the talks. Readers should watch for an official announcement, the final terms and any statement from either company on how the two services would operate together. Until then, the report is a clear signal that the largest independent players in delivery see consolidation as a way to keep up with the two giants.