New York City Mayor Zohran Mamdani is slamming the now-official DoorDash-Instacart deal, questioning how the delivery giant can afford a $17 billion acquisition just weeks after agreeing to pay $131.5 million to settle allegations that it violated the city’s delivery worker pay laws.
DoorDash and Instacart announced the acquisition Thursday, October 29, in a deal that would combine two of the country’s biggest delivery platforms. Mamdani quickly connected the announcement to his administration’s recent enforcement action against DoorDash, accusing the company of prioritizing corporate expansion over workers.
“Just last month, DoorDash couldn’t seem to find the money to pay their deliveristas — until our administration forced them to give back $131M+ in stolen wages and penalties. This week, they’ve managed to find $17 billion to acquire one of their main competitors. Corporate consolidation means higher prices, harsher exploitation, and greater economic inequality for New Yorkers. We’ve stood up to these giants before. That doesn’t stop now.”
Just last month, DoorDash couldn’t seem to find the money to pay their deliveristas — until our administration forced them to give back $131M+ in stolen wages and penalties.
This week, they’ve managed to find $17 billion to acquire one of their main competitors.
Corporate consolidation means higher prices, harsher exploitation, and greater economic inequality for New Yorkers.
We’ve stood up to these giants before. That doesn’t stop now.
— Mayor Zohran Kwame Mamdani (@NYCMayor) October 29, 2026
Mamdani’s criticism follows a September 22 announcement that DoorDash agreed to pay $131.5 million to resolve violations of New York City’s delivery worker laws. City officials described the settlement as the largest worker settlement in the city’s history.
More than $115 million will go directly to affected workers, while approximately $16.7 million covers penalties and related costs. The settlement involves more than 260,000 delivery workers who experienced incomplete payments, delayed payments, or other compensation problems between April 2022 and June 2026.
DoorDash acknowledged that some workers were underpaid or paid late and apologized for the errors. The company attributed certain problems to technical issues and complicated delivery scenarios, including orders involving multiple locations and deliveries crossing city boundaries.
However, DoorDash disputed the city’s interpretation of some compensation requirements, particularly how workers should be paid for time spent logged into the platform between deliveries. The company maintained that its calculations complied with the law but agreed to adopt the city’s approach under the settlement.
The agreement also requires DoorDash to provide compliance information to city regulators for three years.
Now, the deal is bringing renewed attention to the company’s finances and expansion plans.
Under the acquisition agreement, DoorDash will purchase Instacart’s parent company, Maplebear Inc., in a transaction valued at approximately $17 billion.
Instacart shareholders will receive consideration valued at $65 per share, representing a 26% premium over the company’s October 22 closing stock price. At least 75% of the purchase price will be paid in cash, with the remaining portion potentially paid in DoorDash stock.
DoorDash plans to finance the cash portion through existing funds and additional borrowing. JPMorgan Chase has committed to providing temporary financing to support the acquisition.
The transaction is expected to close in late 2027 or the first half of 2028, pending regulatory and shareholder approvals. Until then, both companies will continue operating separately.
DoorDash intends to keep Instacart’s brand, app, and grocery technology platform operating after the acquisition.
The companies say combining their operations could expand grocery delivery options, improve technology for participating retailers, and create opportunities for customers using their subscription programs.
DoorDash has also argued that the acquisition could help smaller grocery businesses compete with major retailers such as Walmart and Amazon by giving them access to delivery services, advertising tools, and technology.
Instacart already works with thousands of grocery stores and has a network of approximately 600,000 independent shoppers. The company says shoppers will continue having flexibility over which orders they accept.
Still, New York City officials have raised concerns about what the deal could mean for competition, delivery workers, and everyday consumers.
On October 28, one day before the official announcement, Department of Consumer and Worker Protection Commissioner Samuel A.A. Levine criticized the potential merger.
Levine warned that increased corporate consolidation could threaten worker and consumer protections. He also pledged that the city would continue enforcing delivery worker laws regardless of whether the acquisition receives approval.
The merger will face antitrust scrutiny, a regulatory review designed to determine whether combining competing businesses could substantially reduce competition.
Regulators may examine the companies’ overlapping delivery services, relationships with grocery retailers, and potential influence over prices and worker opportunities.
Although Mamdani warned that consolidation could lead to higher prices and harsher working conditions, neither company has announced plans to increase delivery fees or reduce worker compensation because of the acquisition.
The transaction remains subject to approval, and its eventual impact on customers and delivery workers has not been established.
For Mamdani’s administration, the announcement comes less than six weeks after its major DoorDash settlement, placing the company’s worker compensation record directly alongside its multibillion-dollar expansion strategy.
