Key facts
- DoorDash says its $17 billion deal for Instacart will "help local stores win."
- Stew Leonard Jr. said he has picked between DoorDash and Instacart to get better terms and worries that could change.
- Anne Roark said she spent days trying to reach Instacart about an $800 invoice with no stated purpose.
- Analyst Kevin Coupe said a combined company would hold detailed data on what consumers buy at specific retailers.
- Uber CEO Dara Khosrowshahi said retailers contacted Uber about working more with its grocery delivery business.
Local grocery chains are raising concerns about DoorDash's $17 billion deal for Instacart, Business Insider reported on November 5, 2026. DoorDash says the transaction will "help local stores win." Many of the chains, some family-owned, have delivery agreements with both services.
Stew Leonard Jr., CEO of Stew Leonard's, which runs eight stores in Connecticut, New Jersey and New York, said he has been able to choose between DoorDash and Instacart to get better terms. He said he worries that could change if the deal closes. "We're not any big customer of theirs," he said. "Will they still be wheelers and dealers and want to grow our business?" He also said he expects a combined company to have more delivery workers, which could let his stores widen delivery areas.
Anne Roark, store manager at Lucerne Valley Market and Hardware in Southern California, said she hopes DoorDash will provide better support for retailers. She said she had spent days trying to reach Instacart customer service about an $800 invoice whose purpose she did not know. She also said she worries the deal could raise the commission she pays Instacart. Linda Gommel, the chain's CEO, told Business Insider that the store tries to serve customers in ways they can afford.
Retail analyst Kevin Coupe said a combined DoorDash and Instacart would hold detailed data on what consumers buy at specific retailers. He cited Instacart's outreach to some Whole Foods customers after Whole Foods said in 2018 it would cut ties with the company, suggesting they shop at other grocers on the app based on past purchases. "You're afraid to leave them because you're afraid they're going to weaponize your customer data against you," Coupe said.
Uber CEO Dara Khosrowshahi said on an earnings conference call Wednesday that retailers had contacted Uber about working more with its grocery delivery business in the week since the deal was announced. "They want choice," he said. "This potential deal takes one of those partners off the table."