DoorDash-Instacart deal could hurt customers and faces AI upheaval, analysts warn, after $17bn acquisition announced

Analysts are warning that DoorDash's $17bn takeover of Instacart could push up fees for consumers and leave Americans with fewer alternatives, as the newly combined giant also faces the disruptive force of artificial intelligence rewriting how delivery platforms operate. The merger joins the US's dominant restaurant delivery platform with its leading grocery delivery rival, but scrutiny is already mounting over what the consolidation means for competition and pricing.

Analysts warn that combining DoorDash and Instacart under one roof reduces competition, making higher delivery fees for customers more likely.

The deal arrives at a moment of upheaval, with AI beginning to transform how delivery platforms match customers with products and optimise routes.