DoorDash to acquire Instacart in a $17 billion deal that would combine two of the largest U.S. delivery platforms. The agreement combines DoorDash’s restaurant delivery network with Instacart’s grocery technology and retail partnerships.
The companies announced the acquisition Thursday, valuing Instacart at $65 per share. That represents a 26% premium to its October 22 closing price. Instacart’s board unanimously approved the transaction.
The deal includes cash and stock, with cash accounting for at least 75% of the total consideration. DoorDash shares will represent no more than 25%.
DoorDash and Instacart Plan to Expand Grocery Delivery
DoorDash plans to retain Instacart’s brand, consumer app and enterprise technology products after the acquisition closes. Both companies will continue operating independently until the transaction is completed.
The combined business would connect DoorDash’s delivery network with Instacart’s grocery ordering, fulfillment and advertising technology. Retailers could use these services to manage online stores, expand deliveries and develop advertising businesses.
DoorDash CEO Tony Xu said grocery delivery requires specialized operations, from selecting fresh produce to handling substitutions and temperature-sensitive products. He believes combining the companies’ capabilities could help smaller retailers compete online.
Instacart CEO Chris Rogers said the agreement would expand opportunities for retail partners, brands and shoppers. The companies also expect customers to benefit from more delivery options and broader store availability.
DoorDash estimates Instacart customers could gain access to more than 50,000 additional stores. The companies also plan to combine DashPass and Instacart+ memberships, potentially saving subscribers $100 million annually.
Acquisition Follows Earlier Sale Discussions
The agreement follows earlier reports of sale talks involving Instacart, DoorDash, and Uber. Bloomberg reported that Uber had withdrawn from discussions before the DoorDash agreement was announced.
Instacart shares rose after those reports as investors considered a possible acquisition. The proposed transaction comes amid intensifying competition in online grocery delivery.
The companies expect to close the deal in late 2027 or the first half of 2028. Completion remains subject to Instacart shareholder approval, regulatory clearance and other customary conditions, including competition reviews.
