Report: DoorDash’s acquisition of Instacart may be finalized as early as Thursday, with a valuation of approximately $17 billion

The agreement for DoorDash to acquire the grocery delivery platform Instacart is expected to be officially announced as early as Thursday morning, with the deal valued at approximately $17 billion.

On Thursday, according to CNBC, sources familiar with the matter indicated that the transaction could be announced as soon as Thursday. Earlier this week, several media outlets reported on Monday that DoorDash was in advanced talks to acquire Instacart. After the news was released, Instacart's share price rose about 4% in after-hours trading on Wednesday, while DoorDash's stock dipped slightly by less than 1%.

If completed, this acquisition would significantly elevate DoorDash’s market position in the online grocery delivery sector, while further consolidating the leading food and grocery delivery platforms in the United States and is expected to face stringent antitrust scrutiny.

From Rumors to Accelerated Negotiations

Market speculation surrounding this deal began last week. According to The Information, Instacart was evaluating potential sale options, having made initial contact with several prospective buyers—including Uber and DoorDash—and hired an investment bank to assess various strategies.

According to Bloomberg, citing people familiar with the matter, Instacart proactively reached out to Uber for acquisition talks, but Uber later withdrew and the discussions have since ceased. This development positioned DoorDash as the primary potential buyer. When news of the talks first broke, Instacart’s share price surged more than 9% in a single day.

Strategic Rationale: DoorDash Reinforces Grocery Delivery Network

For DoorDash, acquiring Instacart marks a significant move in its strategy for diversified expansion. Originally focused on restaurant food delivery, DoorDash has in recent years broadened into the retail segment, bringing brands such as Sephora, Macy's, Staples, and Anthropologie onto its platform and, last year, announcing a partnership with Kroger while increasingly adding regional supermarket chains.

Instacart went public in 2023 and was one of the biggest beneficiaries of surging grocery delivery demand during the pandemic. However, its growth has since slowed noticeably. In December this year, Instacart agreed to pay $60 million to settle allegations by the U.S. Federal Trade Commission (FTC) regarding misleading advertising and “illegal subscription registration” practices.

Instacart’s pursuit of a sale reflects mounting competitive pressure from technology and retail giants. After scaling back its offline grocery business, Amazon has instead focused heavily on online grocery delivery, leveraging its vast fulfillment network to accelerate delivery times for household necessities, groceries, and fresh produce.

Meanwhile, Walmart continues to enhance its same-day and next-day delivery capabilities, directly threatening Instacart’s on-demand delivery model. The aggressive market moves by these two giants have made it increasingly difficult for Instacart to maintain its market share.

Regulatory Risks: Antitrust Review Is The Biggest Uncertainty

Analysts point out that a potential combination of DoorDash and Instacart would inevitably attract regulatory scrutiny. In a research report published Monday, Wedbush analysts noted that third-party delivery platforms “still account for a small portion of overall grocery sales, but if viewed from the perspective of the more niche online market or from the standpoint of grocery stores as enterprise clients, regulatory approval will become much more challenging.”

The two companies have clear business overlap in the online grocery and instant delivery markets, which will be a critical factor determining whether the deal can proceed smoothly.