Grocers push back on DoorDash's Instacart deal
Source: Business Insider ·
DoorDash Instacart merger raises fears for small grocers as family-owned chains weigh delivery power, data control and Amazon competition.
From the source
A Stew Leonard's grocery store in Yonkers, New YorkTed Shaffrey/APDoorDash has said its deal for Instacart will help small businesses compete with larger ones.Some small grocers are skeptical about that.A larger DoorDash could be harder to negotiate with, they said.DoorDash says that its $17 billion deal for Instacart will "help local stores win."Some local stores aren't so sure.Many local grocery chains, some of which are family-owned, have inked delivery deals with DoorDash and Instacart over the past decade. The delivery services were particularly important to the smaller chains during the pandemic and after Amazon bought Whole Foods in 2017 — both events that sent them looking for a quick delivery option.Instead of giving them a shot at competing with Amazon and Walmart, though, some local grocers say the deal presents risks for them. There aren't many options for delivery services, and DoorDash could consolidate delivery market share, the grocers say, giving them less leverage…