Updated version 2 - Correction - Sources say DoorDash is in talks to acquire Instacart for about $17 billions.

Background information and analyst commentary were added in paragraphs 10 and 11, along with a chart.

Echo Wang/Milana Vinn

Reuters, October 26 - A person familiar with the matter told Reuters on Monday that DoorDash (DASH.O) is in advanced talks to acquire Instacart (CART.O), a deal that could value the grocery delivery firm at about $17 billion.

The source said the deal could be finalized as soon as Wednesday, though it is not guaranteed to go through. The person added that Instacart is no longer in acquisition talks with Uber (UBER.N).

As of last Friday’s close, Instacart had a market capitalization of about $13 billion. Shares of Instacart rose around 8% in regular trading, while DoorDash shares fell by about 6%.

https://www.reuters.com/graphics/INSTACART-STOCK/zgvodlqexpd/chart.png

The Wall Street Journal first reported the development on Monday.

With the surge in online food ordering driven by the pandemic gradually fading, the delivery sector is facing rising labor costs, tighter regulations for couriers, and intensifying competition.

This potential deal comes as delivery platforms expand into grocery and retail to drive growth—DoorDash acquired (link) Deliveroo, while Uber bought Postmates (link) and Delivery Hero (link).

If completed, the acquisition would give DoorDash access to Instacart’s established marketplace and retailer partnerships, combining them with DoorDash’s vast delivery network and customer base.

Citing people familiar with the matter, The Information reported Friday that the grocery platform has been exploring a sale and has held early talks with potential buyers, including Uber and DoorDash (link).

When contacted by Reuters, Instacart declined to comment. Uber and DoorDash did not immediately respond.

"Strategically, DoorDash seems like the more natural fit for Instacart, as its restaurant delivery network complements Instacart’s grocery expertise," said Nick Smith, co-founder of strategy consultancy Manifesto Growth Architects.

"For Uber, the acquisition would help cement its position as an everyday convenience platform. But the deal only makes practical sense if it brings additional customer value and profitable growth—not just scale."

Additionally, Instacart said in a regulatory filing Monday that it will phase out its Caper Cart smart shopping cart business by the end of the second quarter of 2027, a move expected to incur $55 million to $80 million in pre-tax charges.

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