The companies say the tie-up would combine DoorDash's global reach and expertise in logistics with Instacart's purpose-built technology and long relationships with grocers.

• DoorDash says its planned acquisition of Instacart will create new opportunities for delivery workers.
• The $17 billion deal would preserve both apps, DoorDash said.
• DoorDash also plans to start listing restaurants on the Instacart app.

Gig workers could see changes to how they make deliveries if DoorDash's $17 billion deal for Instacart goes through.

The companies announced the acquisition on Thursday after several years of considering a deal. It would give DoorDash, long one of the dominant names in restaurant delivery, a much stronger position in grocery delivery.

The acquisition would also bring together millions of gig workers who make deliveries for both companies.

Here's what we know so far about how the deal would affect delivery workers:

DoorDash plans to keep the Instacart app

If the deal wins federal approval, DoorDash doesn't plan to fold Instacart's brand into its own.

That means that the apps will continue to function on a stand-alone basis, DoorDash executives said on a call on Thursday to discuss the deal.

"I think Instacart has built a great brand, and it is a very unique brand where their audience is very loyal to that brand," DoorDash CEO Tony Xu said on the call.

Gig workers will be able to take both restaurant and grocery orders

DoorDash plans to cross-list merchants on the two different apps, CFO Ravi Inukonda said.

Restaurants represent one obvious opportunity, he said. "We are going to be able to list our restaurant platform on Instacart, which is going to drive top-line growth," Inukonda said.

Access to more kinds of orders means that gig workers will have "more choice over when and how they earn, whether that's grocery orders on a quiet day, restaurant orders at peak times, or both," the company said in its deal announcement.

DoorDash says the deal could mean 'greater earning opportunities'

Many of Instacart's grocery partners are looking to compete with bigger companies, Xu said on the call. Amazon and Walmart are both expanding their delivery networks, especially for same-day delivery and fresh food, and many smaller chains will turn to the combined company to offer delivery.

That could mean "faster delivery times, more affordable prices for everyone, greater earning opportunities for shoppers," Xu said, referring to gig workers who shop and deliver orders.

Whether those opportunities result in more pay for workers remains to be seen.

Instacart workers make about $13 an hour, while those working for DoorDash average about $11 an hour, according to gig worker pay data from analytics company Gridwise published in March. Both rates were lower than rival delivery services, such as Amazon Flex and Uber Eats.

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• New York City mayor Zohran Mamdani criticized DoorDash's $17 billion plan to acquire Instacart.
• Mamdani said the deal could lead to higher prices and worse working conditions.
• The companies say the deal will lead to lower prices and give gig workers more chances to earn money.

Zohran Mamdani is skeptical of DoorDash's $17 billion deal for Instacart.

The New York City mayor denounced the proposed acquisition in a post on X on Thursday, hours after the company announced it.

"Corporate consolidation means higher prices, harsher exploitation, and greater economic inequality for New Yorkers," he wrote.

"We've stood up to these giants before," he added. "That doesn't stop now."

DoorDash CEO Tony Xu said on Thursday that the deal would lead to lower prices and faster delivery times for customers, as well as "more earnings" for the gig workers who make deliveries on the apps.

Mamdani also referenced the City's settlement with DoorDash last month, in which the delivery service agreed to pay $131.5 million to end an investigation into how it paid delivery workers in the city.

The settlement includes returning some of the money to workers. Mamdani and the City's Department of Consumer and Worker Protection have taken aim at delivery companies multiple times over the past year, including by enforcing a law requiring the companies to offer customers the option to tip at checkout.

Samuel A.A. Levine, the Department's commissioner, said that the deal "continues a troubling trend of mega-corporations consolidating while working to divide workers and consumers."

"Whether or not this merger proceeds, we will fully enforce delivery workers' rights," Levine added.

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• DoorDash has agreed to acquire Instacart.
• The $17 billion deal is expected to close at the end of 2027 or in the first half of 2028.
• It will give DoorDash a leg up over Uber and Amazon in the world of grocery delivery.

Two of the biggest names in food delivery are coming together.

DoorDash plans to acquire Instacart in a deal worth about $17 billion, the companies said Thursday. The deal is expected to close at the end of 2027 or in the first half of 2028.

The acquisition would combine DoorDash's historical dominance in restaurant delivery with Instacart's roster of grocery partnerships, creating one company to deliver much of customers' weekly dining needs.

"Together, we can accelerate innovation across the grocery industry and make online grocery more seamless and affordable for the millions of households we serve," said Chris Rogers, the CEO of Instacart.

This isn't the first time that DoorDash and Instacart have considered a deal, Apoorva Mehta, Instacart's founder, said in a statement Thursday.

"Tony and I have explored bringing Instacart and DoorDash together on and off over the years," he said.

"We kept coming back to it because the industrial logic has always been clear," Mehta added, referring to the opportunity to sell customers more of the 21 meals they eat each week.

DoorDash has been growing its grocery business since the pandemic, which pushed many shoppers out of stores and toward delivery services as they stayed home more. Since then, the company has partnered with dozens of grocers, creating a selection that rivals Amazon's with less infrastructure, CEO Tony Xu said earlier this year.

Instacart, meanwhile, has focused on grocery delivery since its inception in 2012. The startup delivered orders from Whole Foods before Amazon bought the chain in 2017. It now works with thousands of retailers in North America and sells retail technology, from digital price tags to smart shopping carts.

In a joint announcement, the companies said the deal would mean Instacart customers could shop at more than 50,000 additional stores, and that DashPass and Instacart+ members would pay one membership fee instead of two.

The deal, which will be at least 75% cash, values Instacart at $65.00 per share, representing a 26% premium over its closing price on October 22.

Taking on Amazon and Uber

The combined company will be a more formidable presence in the competitive grocery delivery industry.

Amazon has spent years trying to increase sales in its grocery business, including a rollout of same-day perishable food deliveries to more parts of the US over the past year. And Walmart is also building its own delivery infrastructure, including its own network of gig-worker couriers and expanding into restaurant delivery.

Combining DoorDash and Instacart would give other grocers a better shot at taking on companies like Amazon and Walmart, DoorDash said.

"A lot of what we talk about with grocers is: How can we together help them compete against the largest companies in the world?" DoorDash CEO Tony Xu said on a call Thursday.

Uber has also grown its restaurant and grocery delivery business through Uber Eats. The company has recently moved deeper into premium ride-hailing options, such as black car services, as well as travel through a hotel-booking partnership with Expedia.

Both DoorDash and Instacart have relied on gig workers to pick orders and make deliveries. As independent contractors, most don't receive many of the same benefits as full-time workers, such as health insurance or contributions to retirement accounts.

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• The FTC wants information about how companies personalize prices.
• The Commission said that it sent orders to companies from Uber to Walmart.
• The orders ask about web use habits and other personal information.

The Federal Trade Commission is asking companies from food delivery services to airlines about how they use personalized prices.

The Commission said on Wednesday that it sent orders to the companies asking for details about what kind of personal information they use to determine prices. The orders target a wide range of companies, from retailers Walmart and Target to food delivery services Uber and DoorDash to airlines like Delta and United.

"Consumers deserve to know whether companies use their web surfing habits or other personal data to estimate the highest price they can charge each consumer," said FTC Chairman Andrew N. Ferguson.

"Workers also deserve to know if their compensation is affected by how companies use their personal data," Ferguson added.

Several companies pushed back against the FTC's claims.

"There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized offers based on personal data," a Delta spokesperson said.

"We do not use personal information to set prices, and we never will," Instacart said in a statement.

Walmart and Target previously said they would be transparent about their pricing strategies as more stores start using digital price tags.

A growing number of companies are using dynamic pricing to determine what customers pay for everything from concert tickets to jeans.

Some companies use similar methods to determine how much workers get paid. Uber presents its drivers with potential payouts that aren't based on a per-mile or per-minute rate, for instance, but instead consider factors such as demand.

The FTC's orders ask the companies to submit information about their pricing methodologies, including how they use AI, going back to January 1, 2023. It also asks for research that the companies have done on their pricing strategies, such as A/B tests.

The Commission is also seeking information about how the companies used similar technology to offer workers jobs, according to the orders.

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• Instacart is shuttering its team focused on smart shopping carts.
• The company will wind down its Caper cart division by the second quarter of 2027, it said Monday.
• The smart shopping carts were "the future of grocery shopping," Instacart's former CEO said in 2024.

Instacart is carting away a technology it once said would play a key role in shopping.

The grocery delivery company will wind down the team that develops its Caper smart shopping carts, it said on Monday. The move, approved by Instacart's board of directors, will be completed by the second quarter of 2027.

A wind-down will cost the company between $55 million and $80 million, including the costs of terminating some employees and contracts, it said in a filing with the SEC. Instacart will reinvest savings from the decision into "strategic growth initiatives."

Caper carts were one of the most visible of Instacart's retail technology efforts. The company began as a delivery-focused startup in 2012, but diversified into selling technology to retailers over the last several years.

Equipped with cameras and sensors, Caper carts could weigh fruit, track what customers placed inside or removed from them, apply coupons, and accept payments when customers were done shopping. Instacart also saw an opportunity to serve users tailored ads on the carts' screens.

In early 2024, Instacart said it planned to roll out "thousands" of the Caper carts to stores. Then-CEO Fidji Simo said: "We really believe that it's going to be the future of grocery shopping."

Amazon, which makes a similar smart shopping cart, said at the start of 2026 that it planned to start using a new version at Whole Foods Market stores.

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