Mamdani Warns $17B DoorDash-Instacart Deal Risks Higher Costs for Customers
Summary
New York City Mayor Zohran Mamdani says DoorDash’s proposed $17 billion acquisition of Instacart could reduce competition and raise costs for customers. The companies say the deal could lower membership costs and expand store access, while regulators and shareholders must still approve it.Key Facts
- DoorDash has offered approximately $17 billion to acquire grocery and convenience delivery company Instacart.
- The companies say Instacart would keep its brand and app, and its shoppers could continue fulfilling orders.
- DoorDash says customers who pay separately for DashPass and Instacart+ could eventually use one membership; the companies estimate combined membership savings of $100 million annually.
- The companies say Instacart customers would gain access to 50,000 additional stores on DoorDash’s platform.
- Mamdani criticized the proposed acquisition and cited DoorDash’s recent settlement of more than $131 million with New York City over delivery-worker pay.
- The American Economic Liberties Project has urged regulators to block the deal and says the combined company would control nearly 60 percent of the third-party grocery delivery market.
- The acquisition requires shareholder and regulatory approval.
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