Sources: chipmaker Onsemi is in talks to acquire 16-year-old chip startup Ferric for ~$1B; PitchBook: Ferric last raised a $32.1M Series C in December 2024 (Valida Pau/The Information)

DoorDash is reportedly engaged in late-stage negotiations to acquire Instacart in a deal valued at approximately $17 billion, according to sources. While an announcement could be made as early as mid-week, sources cautioned that nothing has been officially finalized and the deal could still fall through. Instacart has also been linked to talks with Uber, but those discussions are no longer active.

The potential acquisition may be contingent on Uber's willingness to pursue the deal again if DoorDash fails to secure the acquisition. DoorDash's stock has risen by 2.61 percent following the news, while Instacart's shares have decreased by a similar percentage. Both companies have market capitalizations around $74.7 billion and $14 billion, respectively.

The acquisition could prove advantageous for both companies, as Instacart would gain access to DoorDash's extensive delivery network and customer base, while DoorDash would benefit from existing retail partnerships. Currently operating in distinct categories, DoorDash specializes in restaurant and convenience store delivery, while Instacart has traditionally focused on grocery delivery.

Consolidation within the food delivery sector could be beneficial for consumers, potentially eliminating the need for multiple monthly or annual subscription fees for those subscribed to both services. The trend of consumers paying for convenience and automation, such as grocery delivery services, has been well-documented, making a merged platform appealing to users seeking simplified and efficient service.