DoorDash is reportedly in advanced discussions to acquire its food-delivery competitor Instacart, with the possibility of reaching a deal as early as this week. Sources familiar with the matter indicated that the acquisition could value Instacart at approximately $17 billion, although there is no certainty that an agreement will be finalized.

Instacart, which held its initial public offering in 2023, had a market valuation near $13 billion prior to news of the talks. Following reports of the potential deal, Instacart’s shares climbed nearly 8% on Monday. Conversely, DoorDash, with a market capitalization around $73 billion, saw its stock decline by just over 6% on the same day.

The proposed purchase would enhance DoorDash’s portfolio by adding a prominent grocery delivery platform to its existing range of services. Instacart specializes in online grocery ordering and home delivery from a variety of supermarket chains and convenience stores. DoorDash already partners with retailers including Kroger, Safeway, and Aldi to provide grocery delivery, complementing its established dominance in restaurant food delivery.

Originally launched as a restaurant food delivery service, DoorDash has broadened its reach into retail, offering delivery from major retailers such as Macy’s, CVS, and Target. The company is also exploring innovative delivery methods, including drone logistics and ordering through chatbot technology.

Instacart previously considered a sale in 2021 when its share price was markedly higher and it maintained a larger share of the food-delivery market. Since then, major retailers like Walmart and Amazon have increased their presence in the sector, intensifying competition.

Earlier reports also indicated that Uber was interested in acquiring Instacart; however, sources now say those negotiations have ended, leaving DoorDash as the primary suitor.