DoorDash is in talks to buy Instacart in a roughly $17 billion deal

DoorDash is far along in negotiations to buy Instacart, with a price that could put the grocery delivery company's worth at roughly $17 billion, according to The Wall Street Journal.

A deal might be wrapped up as early as this week, but nothing is certain, according to The Wall Street Journal. Timing could be as early as Wednesday, according to Reuters.

Instacart was valued by the market at roughly $13 billion when trading ended on Friday. Instacart stock gained roughly 8% during Monday's regular session, whereas DoorDash stock slid roughly 6%. Instacart went public in 2023, according to The Wall Street Journal.

Instacart's discussions with Uber $UBER over a transaction are currently dormant, according to Reuters. Instacart did not offer a statement in response to a request from Reuters. Uber and DoorDash did not immediately respond to Reuters.

If it closes, the acquisition would open the door for DoorDash to Instacart's marketplace and its network of retail partnerships, according to Reuters. DoorDash could pair those strengths with the courier network and users it has built on its own, according to Reuters.

Delivery companies have been branching out into groceries and other retail categories in search of growth outside restaurant delivery, according to Reuters. DoorDash is buying Deliveroo, and Uber has acquired Postmates and Delivery Hero, according to Reuters. The industry has also had to contend with climbing labor expenses and stricter rules governing delivery workers, according to Reuters.

Both companies turned profitable in 2024. DoorDash posted its first annual profit under generally accepted accounting principles, $123 million on $10.7 billion in revenue, and Instacart recorded $457 million in net income.