DoorDash found $17 billion for Instacart. Mamdani wants to know where workers’ money went

DoorDash announced a $17 billion deal to acquire Instacart on Thursday, saying the merger would bring cheaper deliveries and more choices for consumers.

New York City Mayor Zohran Mamdani had a different question: How could a company that had just agreed to pay $131.5 million over delivery wage violations suddenly find $17 billion to buy one of its biggest competitors?

Mamdani calls out DoorDash

Last month, New York City reached a record settlement with DoorDash for violating its delivery worker laws. More than 260,000 workers were affected, with over $115 million set aside for back pay.

"Just last month, DoorDash couldn't seem to find the money to pay their deliveristas," Mamdani wrote on X. "This week, they've managed to find $17 billion to acquire one of their main competitors."

Mamdani argued that the acquisition could mean higher prices for customers and worse conditions for workers, accusing DoorDash of putting corporate greed ahead of the people who deliver its orders.

Will consolidation make groceries more expensive?

Federal Trade Commission research offers a warning.

Its analysis of grocery mergers found that acquisitions in already concentrated markets led to higher prices. In less concentrated markets, some mergers reduced them.

DoorDash accounts for 59% of U.S. spending on delivery platforms, compared with Instacart's 18%, according to the Associated Press. The deal would put two major delivery platforms under one roof, potentially leaving customers and workers with fewer alternatives.

DoorDash says combining DashPass and Instacart+ could save members roughly $100 million a year in subscription fees. But those savings won't mean much if delivery charges and grocery prices rise.

📌 Bottom line: DoorDash says the merger will save customers money, but fewer competitors could give the company more freedom to raise prices.