DoorDash beat revenue forecasts and investors punished it for spending more

DoorDash agreed to acquire Instacart for $17B, pending regulatory approvals. The deal, expected to close by mid-2028, would combine restaurant and grocery delivery services. DoorDash aims to offer a single membership, potentially saving customers $100M annually. Critics warn of reduced competition and higher fees. Both companies face scrutiny over pricing practices. Instacart shareholders must approve the sale.

The FTC ordered DoorDash, Instacart, Walmart, and others to explain if they use personal data to set prices and gig-worker pay. DoorDash's $17B Instacart deal is under antitrust review. DoorDash's operating margin was 6% in 2025, and it settled a Dasher pay probe for $131.5M. The stock trades at 26x forward earnings.

DoorDash asked employees to avoid LinkedIn connections with Instacart peers, citing competitive sensitivity. The $17B deal is expected to close by mid-2028. Experts note this is an uncommon request in M&A.

DoorDash (DASH) will acquire Instacart (CART) for $17 billion, or $65 per share. The deal is 75% cash, 25% stock. Instacart's board approved the agreement. Latham & Watkins advised DoorDash on the transaction.

DoorDash is reportedly nearing a $17 billion deal to acquire Instacart, sending Instacart's shares up 8% on Oct. 26. Industry veteran Andrés Fournier questions the sustainability of the combined company's business model, citing thin grocery margins and high delivery fees. Instacart's founder, Apoorva Mehta, stands to gain significantly if the deal closes.

DoorDash will acquire Instacart for $17 billion, valuing it at $65 per share, a 26% premium. The deal is expected to close by 2028. DoorDash plans to maintain Instacart's branding and technology, leveraging its grocery tech with DoorDash's logistics. Instacart's AI-powered shopping assistant, Clementine, may be integrated post-merger.