DoorDash’s Instacart deal may draw FTC scrutiny amid cost-of-living concerns
CART•DoorDash’s $17 billion acquisition of Instacart is likely to face FTC scrutiny, with regulators focused on affordability, competition in grocery delivery and companies’ use of shopper data.
1. Deal faces review
The Federal Trade Commission is likely to scrutinize DoorDash’s planned $17 billion acquisition of Instacart. The deal would give DoorDash a faster route into the grocery business, which it has long tried to build.
2. Competition and market share
The companies overlap in grocery delivery, and regulators are likely to compare data on competitors as part of any review. YipitData figures cited in the article put DoorDash at 65.1% of all restaurant, grocery and retail delivery orders last year, Uber Eats at 25.8% and Instacart at 9.1%. DoorDash could argue that Walmart, Amazon and Target also compete through same-day grocery delivery.
3. Affordability and shopper data
The FTC has focused on affordability and has examined Instacart’s past price experiments, which the company ended after criticism. On Wednesday, the agency launched a study into whether and how companies including DoorDash and Instacart use individual shoppers’ data to set prices and driver wages. Groundwork Collaborative President Lindsay Owens criticized the proposed deal over its potential consolidation of shopper data and pricing technology.
