DoorDash’s Instacart deal may draw FTC scrutiny amid cost-of-living concerns

Federal Trade Commission (FTC) may scrutinize the proposed $17 billion acquisition of Instacart by food delivery giant DoorDash, due to concerns over affordability amidst the high cost of living in the United States. The FTC, known for focusing on retail and grocery-related mergers, has been increasingly attentive to consumer pocketbooks and has taken action against Uber for subscription practices.

In 2023, the FTC reviewed Instacart's price experiments, which resulted in some shoppers paying more for the same items than others.

Regulators are likely to review the deal due to the substantial overlap between DoorDash and Instacart, particularly in grocery delivery. The combined companies would benefit from an enormous amount of data on Americans' shopping habits, which could be used to set prices and wages. A study by Consumer Reports and Groundwork Collaborative found that Instacart was running price experiments that led to unequal pricing for shoppers. Following the study, Instacart ended the practice.

DoorDash has significant experience in Washington, having backed President Donald Trump's tax exemption plan for tips and delivering food to the White House to demonstrate the policy's benefits. While DoorDash has been a pioneer in grocery and retail orders, it faces competition from other delivery apps, including Uber Eats and Grubhub, and traditional retailers like Walmart, Amazon, and Target. The FTC is expected to compare data from competing companies during the review process.