DoorDash has agreed to buy Instacart for $17 billion. Regulators must approve it first, so the effect on grocery fees and store choice is still unclear.
DoorDash plans to buy its rival Instacart, a grocery delivery service, in a deal valued at $17 billion. It is not final. Regulators and Instacart shareholders still have to approve it.
DoorDash and Instacart are two of the most active platforms for delivering groceries and other retail goods. DoorDash expects to pay with a mix of cash, stock and debt. It says the deal could add 50,000 stores for Instacart users, on top of the nearly 100,000 already on the app.
DoorDash CEO Tony Xu said grocery is hard to get right online. In his words: "Someone has to pick a ripe avocado, find a substitute you'd choose yourself, and get the ice cream to you before it melts." Online grocery sales in the U.S. grew by more than 20% year over year, according to the firm Brick Meets Click.
The companies expect the deal to close near the end of 2027 or in the first half of 2028. Until then, Instacart will keep operating independently. After closing, DoorDash expects to keep the Instacart brand, its app and its technology products for businesses.
What is not known yet: whether fees or prices will change for shoppers. The announcement as reported does not say. Nothing changes for Instacart customers today.
Nothing changes for Instacart users now, but watch for fee, price and store changes as the deal moves toward a 2027 or 2028 close.
Fake PayPal emails and texts, some posing as a security report, try to get you to tap a link and type your login. Checking your account directly avoids the trap.
Read more: Got a fake PayPal message? Skip its link and check your account yourselfSecurity firm Flashpoint says criminals are trading in refund tricks, gift card fraud and hacked online stores ahead of the holidays. Shop owners should check their refund steps.
Read more: Scammers are targeting store refunds and gift cards before the holidaysGoogle Home can now check your home Wi-Fi to decide if you are there, which may fix lights and thermostats that misfire when you come and go.
Read more: A Wi-Fi setting makes Google Home know when you're really home
