Grocers push back on DoorDash's Instacart deal
DoorDash Instacart merger raises fears for small grocers as family-owned chains weigh delivery power, data control and Amazon competition.
A Stew Leonard's grocery store in Yonkers, New York, expressed skepticism over the proposed $17 billion DoorDash deal for Instacart. The delivery service could potentially consolidate the market and limit small grocers' ability to negotiate terms of their deals, according to some local store owners. Stew Leonard Jr., CEO of Stew Leonard's, a grocery chain with locations in Connecticut, New Jersey, and New York, said that while DoorDash and Instacart have been willing to work with his stores, he fears the combined company may not be as responsive to their needs.
Anne Roark, store manager at Lucerne Valley Market and Hardware in Southern California, echoed similar concerns, stating that she has faced difficulties reaching Instacart customer service and worries about potential increases in commission fees. Retail analyst Kevin Coupe warned that a larger DoorDash could use customer data against smaller retailers, making it difficult for them to switch to rival delivery services.
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