Mamdani warns DoorDash’s $17 billion Instacart deal could hurt New Yorkers
New York City’s mayor raised concerns about prices and delivery workers after DoorDash announced its proposed acquisition. The company says the deal could benefit both groups.
DoorDash’s proposed $17 billion acquisition of Instacart drew criticism from New York City Mayor Zohran Mamdani on October 29, 2026. Mamdani warned that the combination could hurt New Yorkers through higher prices and harsher treatment of delivery workers, while DoorDash said it expects benefits for customers and workers.
In a post on X hours after the announcement, Mamdani argued that corporate consolidation means higher prices, harsher exploitation and greater economic inequality for New Yorkers. ‘We’ve stood up to these giants before,’ he wrote. ‘That doesn’t stop now.’
DoorDash CEO Tony Xu said the deal would bring lower prices and faster deliveries for customers, alongside more earnings for workers who make deliveries through the apps, Business Insider reported. Those are his expectations for the proposed combination.
DoorDash’s proposed terms for Instacart
The transaction values each Instacart share at $65 and Instacart at $17 billion. Instacart shareholders may elect cash, DoorDash stock or a mix, subject to limits and proration, according to DoorDash’s announcement. Both companies’ boards have approved the deal, TechCrunch reported. DoorDash said the per-share value represents a 26% premium to Instacart’s October 22 closing price.
The proposed combination would bring together DoorDash’s restaurant delivery business and Instacart’s grocery delivery platform. DoorDash plans to retain Instacart’s brand, app and technology products for retailers. The company said Instacart customers could gain access to more than 50,000 additional stores, beyond the nearly 100,000 on its platform today.
The companies will continue operating independently until the transaction closes, according to TechCrunch. CBS News reported that DoorDash expects closing in late 2027 or early 2028; the acquisition remains pending.
New York City’s concerns about delivery workers
Mamdani pointed to the city’s settlement with DoorDash the previous month. Business Insider reported that the company agreed to pay $131.5 million to end an investigation into how it paid New York City delivery workers, with some of the money to be returned to workers.
Samuel A.A. Levine, the city’s consumer and worker protection commissioner, called the proposed acquisition part of a troubling consolidation trend. ‘Whether or not this merger proceeds, we will fully enforce delivery workers’ rights,’ he said, according to Business Insider.
Federal regulators are also examining pricing practices. CBS News reported that the Federal Trade Commission announced an inquiry on October 29 involving DoorDash, Instacart and seven other retail and transportation companies. The reported inquiry concerns how those companies set prices.
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Sources and context
- Zohran Mamdani has a spicy take on DoorDash's deal for InstacartBusiness Insider
- DoorDash to acquire Instacart for $17BTechCrunch
- DoorDash gobbles up Instacart in $17 billion dealCBS News; the page says The Associated Press contributed to the report
- DoorDash to Acquire Instacart to Help Local Stores WinDoorDash investor relations; release distributed by Business Wire
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.