DoorDash's $17 billion Instacart plan sparks consolidation debate

DoorDash's plan to acquire Instacart for about $17 billion has stirred debate in commerce media circles, according to Digiday, with views divided over the deal impact on competition.

DoorDash third-quarter results showed 993 million total orders, while Instacart reported 91.4 million orders, illustrating the scale of the order base that would move to a single entity if the deal is completed.

Bill Wise, chief executive of Mediaocean, said commerce media is consolidating around a few major players, signalling that the market may see more mergers in the coming period.

The debate raises the question of whether expansion will benefit advertisers through wider options and more precise data, or reduce competition and raise the cost of reaching shoppers.

What do these terms mean?

Commerce media: Advertising and promotional spaces that appear inside shopping and delivery platforms, targeting shoppers at the moment they are preparing to buy a product.

Acquisition: A company purchase of a controlling stake in another company, often by paying cash or shares, so that the buyer controls its business.