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Stop DoorDash's $17 Billion Instacart Takeover
DoorDash just announced it wants to buy Instacart for $17 billion. Two major grocery delivery competitors could soon answer to one corporate giant — potentially leaving families with fewer choices and higher costs.
The companies might keep separate apps, but they'd no longer be independent competitors. That could mean higher delivery fees, less bargaining power for workers, and more pressure on independent grocers.
And their records already raise concerns. Consumer Reports found that Instacart's experimental pricing system showed some shoppers prices up to 23% higher for identical groceries. Instacart ended the program. DoorDash also agreed to a $131.5 million settlement over underpayments affecting more than 260,000 New York City delivery workers.
Now, if the Federal Trade Commission (FTC) doesn't stop them, these companies could go even further, with even less competition holding them back.
Just one day before the merger announcement, the FTC demanded information from DoorDash, Instacart, and seven other companies as part of a broader inquiry into how personal data influences prices and worker pay.
DoorDash and Instacart promise savings for customers and businesses. But imagine comparing prices between two grocery delivery apps, only to discover that both answer to the same corporation. Or running a neighborhood grocery store with fewer independent delivery partners to negotiate with.
The good news is that the takeover isn't final. The FTC can investigate its impact on competition and challenge it in court before the companies combine.
But once these giants join forces, reversing the damage could be far harder. We need to build pressure on the FTC to act now, before families, workers, and small businesses lose even more bargaining power.
Thanks for all that you do,
Matt from the Swarm
