Podcast: Why DoorDash is really buying Instacart

Plus more great Businessweek stories ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Welcome to the Saturday edition of Businessweek Daily, featuring the Everybody’s Business podcast. Let us know what you think by emailing the editor. If this newsletter was forwarded to you, click here to sign up. Subscribe to Bloomberg.com for unlimited access to all our coverage. Whether it’s takeout or groceries, food delivery is a lot more expensive these days — partly because of inflation, partly because of pressure to pay gig workers better wages, and partly because investors are pushing companies to find ways to increase revenue. The results have been mixed. DoorDash, the leading restaurant delivery app in the US, has managed to turn a profit by branching out into other categories and raising prices. Instacart has grown more slowly but has better margins, thanks to an expansion into software (for grocery stores) and advertising (for consumer-product companies that pay for placement in its app). Both face big challenges, though. Hence, a merger. DoorDash announced on Oct. 29 that it was buying Instacart, known on the stock market as Maplebear Inc., for $17 billion. The deal was applauded by DoorDash shareholders but criticized by consumer advocates and prominent Democrats such as New York City Mayor Zohran Mamdani, who predict it will lead to even higher fees and higher prices. This week on the Everybody’s Business podcast, Joshua Brustein, who covers tech for Bloomberg Businessweek, explains the threats faced by the two companies and the political calculus behind the deal’s timing. Also this week, hosts Stacey Vanek Smith and Max Chafkin delve into the economics of Halloween — or what we like to call “spookflation.” Listen and subscribe on Apple, Spotify, iHeart and the Bloomberg Terminal. Everybody's Business Spookflation Comes for us All More Weekend Reads Inside the cyber sabotage campaign linked to Russia. The race for the worst job in California politics. (Listen to the story.) How Snapchat’s speed filter led to the legal blueprint to tackle social media. (Listen to the story.) Christian conservative commentator Allie Beth Stuckey is burned out on politics. (Listen to the story.) How Senator Jon Ossoff is navigating Georgia’s tangled politics. (Listen to the story.) Democrats’ Latest Rising Star Has Unfinished Business in Georgia How much you’re paying for Trump’s tariffs and war in Iran. China’s push to surpass the US in space. Burger King boss Tom Curtis on revamping the popular fast-food chain. The head of the Radisson Hotel Group is looking to India for growth opportunities. Can Trump’s trade chief sell Americans on tariffs? Another reason California’s billionaires have a problem with the proposed wealth tax. MBA applications in the US plunge as international student demand drops. Anthropic’s IPO documents raise more questions about the risks of AI. How the AI Fed voted on interest rates. Five questions for Royal Bank of Canada CEO Dave McKay. Why you’ll miss cold emails when AI kills them off. Lula da Silva’s shock win stokes fears over Brazil’s financial fate. For Google, the economics of AI mode look shaky. Science influencer Mark Rober on self-driving cars and what’s missing in education. How the train crash in Spain will affect this fall’s election. 7 Brew, Gen Z’s anti-Starbucks, is on an expansion spree. Halloween Candy Prices Reflect Cocoa’s Wild Ride Test Your Knowledge Christine Lagarde announced she would be leaving which major financial institution? Think you know the answer? Pointed|Bloomberg Games Play We’re improving your newsletter experience, and we’d love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow Us You received this message because you are subscribed to Bloomberg’s Businessweek Daily newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |