DoorDash purchase of Instacart for $17B will create ‘a behemoth’ delivery service

Wedbush upgraded DoorDash (DASH) to 'Outperform' and raised its price target to $230, citing strong Q3 results and the Instacart acquisition. Wells Fargo lowered its target to $200, noting mixed views on the deal. Both stocks saw high retail sentiment, with DASH down 22% and CART up 22% year-to-date.

DoorDash is acquiring Instacart for $17 billion, combining two major delivery platforms. The deal expands DoorDash's market reach to nearly 150,000 stores. DoorDash shares rose 9% in premarket trading. The acquisition follows a $131.5 million settlement for underpaying workers.

Truist Securities kept its Buy rating on DoorDash and increased its price target to $340 from $336, suggesting an 89.9% upside from the last close. Recent analyst targets for DoorDash range from $205 to $255.

DoorDash agreed to buy Instacart for $17 billion, with Instacart shareholders to receive $65 per share in cash, DoorDash stock, or a mix. The deal, expected to close by mid-2028, faces regulatory and antitrust reviews. Both companies' boards approved the acquisition, which aims to streamline services and reduce membership fees for customers.

DoorDash plans to acquire Instacart for $17 billion, aiming to expand store access and offer a combined membership. The deal, expected to close by early 2028, may reduce subscription costs but could also lead to higher service fees and grocery prices, according to experts. DoorDash expects to add 50,000 more stores to Instacart's nearly 100,000. The acquisition may face regulatory scrutiny.

DoorDash agreed to acquire Instacart for $17 billion, offering $65 per share. The deal, subject to antitrust review, would combine two major delivery platforms, affecting grocery prices, competition, and gig workers. DoorDash's market share in U.S. grocery deliveries has grown to 59%, while Instacart's has fallen to 18%.