Key facts
- Mamdani denounced the proposed acquisition on X on Thursday.
- He stated corporate consolidation leads to higher prices, harsher exploitation, and greater economic inequality.
- DoorDash agreed to pay $131.5 million to settle a probe into delivery worker pay in New York City last month.
New York City Mayor Zohran Mamdani expressed skepticism on Thursday regarding DoorDash's proposed $17 billion acquisition of Instacart. He posted on X that corporate consolidation results in higher prices, harsher exploitation, and increased economic inequality for New Yorkers. Mamdani referenced a recent settlement where DoorDash agreed to pay $131.5 million to resolve an investigation into its payment practices for delivery workers in the city. DoorDash CEO Tony Xu, however, stated that the deal would lead to lower prices and faster delivery times for customers, as well as more earnings for delivery workers. Samuel A.A. Levine, commissioner of the Department of Consumer and Worker Protection, echoed Mamdani's concerns, calling the deal a troubling trend of mega-corporations consolidating.