DoorDash is promising shoppers more stores, faster deliveries, and potentially lower subscription costs through a planned $17 billion acquisition.
After much speculation, DoorDash confirmed its decision to acquire familiar grocery delivery hub Instacart.
While combining two of America’s biggest delivery platforms could eliminate the need for separate memberships, experts warn that the final grocery bill may tell a different story.
The Oct. 29 announcement comes as grocery delivery becomes an increasingly important shopping option, but raises questions about what consolidation could mean for service fees, grocery prices, and customer choice.
With the two delivery giants together, DoorDash expects it to give Instacart customers access to more than 50,000 additional stores, on top of the nearly 100,000 already available through Instacart.
One of its biggest promises is a combined membership offering that would allow customers to access benefits from both DashPass and Instacart+ for a single subscription fee. The company estimates the change could save customers $100 million annually in membership fees alone.
However, experts say those savings might not translate into lower grocery bills.
DoorDash and Instacart customers could face hidden costs
Currently, DashPass and Instacart+ each cost $9.99 per month at their standard rates, so customers subscribing to both pay $19.98 per month.
The companies have not disclosed the price of the proposed combined membership.
However, Rob Lalka, professor of business at Tulane University’s Freeman School of Business, said customers should pay attention to charges beyond the subscription price.
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“What the average customer should look for now isn’t just price increases but other ways costs appear, in ways that aren’t always obvious: markups on popular items, higher service-fee percentages, ad placement, or memberships you pay to stop seeing fees, just to name a few examples,” Lalka told TheStreet.
Those concerns are relevant because delivery memberships do not necessarily eliminate all charges.
Instacart+ offers zero delivery fees on eligible orders, but service fees can still apply. Similarly, DashPass offers reduced service fees and zero delivery fees on qualifying purchases.
Then there’s the $10 minimum at most stores for Instacart members, which is $35 for DoorDash. The difference will matter to customers in the future.
Grocery item prices can also differ from what shoppers pay in stores.
Instacart has acknowledged that while its retail partners control base item prices, some apply markups to help cover the costs associated with online shopping and same-day delivery.
Lalka said the combined company could use streamlined operations and technology to reduce costs, but greater leverage over retailers and delivery workers could also put pressure on pricing.
What the DoorDash-Instacart merger means for shoppers
Jay Aldebert, chief growth officer at International Services Inc., said consumers shouldn’t assume the companies’ projected savings will benefit everyone.
“When you take a major competitor out of the market, there’s less pressure to keep prices down,” Aldebert told TheStreet.
“Consumers might see some attractive membership deals upfront, but once this deal closes, I’d be watching what happens to delivery fees, service charges and grocery prices.”
The merger could also affect independent retailers and delivery workers, particularly if the combined company gains more bargaining power.
DoorDash has committed to allowing grocery retailers to continue working with competing delivery platforms. It also said Instacart shoppers would retain the flexibility to choose their work and whether to accept DoorDash orders.
DoorDash’s acquisition spree could face regulatory hurdles
The Instacart deal follows a series of acquisitions that have already expanded DoorDash’s market share.
The company completed its acquisition of Deliveroo in October 2025, strengthening its international delivery operations. It also acquired SevenRooms, a restaurant reservations and customer management platform, in June 2025.
However, acquiring Instacart could pose a different challenge because both companies compete in the U.S. grocery delivery market.
The proposed acquisition may attract scrutiny from the Federal Trade Commission, given concerns about competition and affordability.
DoorDash, meanwhile, argues that the acquisition would help smaller grocery retailers compete with larger companies such as Walmart and Amazon.
For now, customers won’t see immediate changes from the proposed acquisition. Instacart has already been sending out emails to assure existing members.
The transaction is expected to close in late 2027 or the first half of 2028, subject to shareholder and regulatory approvals. DoorDash plans to retain Instacart’s app and brand, and both companies will operate independently until the deal closes.
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