DoorDash: We're the little guys
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Illustration: Aïda Amer/Axios
Food delivery company DoorDash is framing its $17 billion Instacart acquisition as a way to help smaller businesses fend off Amazon and Walmart.
Why it matters: The deal has a solid chance of passing federal antitrust muster under the Trump administration, but it still faces state, local, and consumer backlash — particularly in blue states.
What they're saying: The two companies launched Shop Local Together Thursday, addressing concerns that might come up in FTC review.
- They argue the combined companies "will have more resources, reach, and technology to help brick-and-mortar grocery stores and retailers compete against the world's biggest e-commerce giants."
- They specifically claim their technology will help reduce the AI-driven gap the giants are building on small businesses.
What they're doing: The companies plan to combine the two subscription fees, and claim that will save consumers $100 million annually.
- They also intend to cancel exclusivity agreements, allowing local grocers to work with any delivery platform.
Yes, but: Even if the FTC green-lights the deal, state and local governments will pressure the companies.
- "Corporate consolidation means higher prices, harsher exploitation, and greater economic inequality for New Yorkers," New York City mayor Zohran Mamdani wrote on the deal Thursday. "We've stood up to these giants before. That doesn't stop now."
- DoorDash recently settled a lawsuit with New York City over allegations of underpaying delivery workers. Last year, it settled one with Chicago over deceptive practices.
Reality check: Small isn't the word that comes to mind when a $74 billion company shells out $17 billion for an acquisition.
- Amazon and Walmart make convenient Goliaths, but DoorDash's more direct peers are Uber, with a $133 billion market cap, plus privately held FreshDirect and Wonder.
