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 to negotiate the terms of their deals with DoorDash.
Stew Leonard Jr., CEO of Stew Leonard's, a grocery chain with eight stores in Connecticut, New Jersey, and New York, offers delivery through DoorDash and Instacart.
Both companies have been willing to work with Stew Leonard's to grow online orders, whether through seasonal promotions or advertising, Leonard said. He's also been able to pick between the two services to get better deals, he added.
If the deal go...