DoorDash has agreed to acquire grocery-delivery platform Instacart in a deal valued at approximately USD 17 billion. The agreement brings together DoorDash’s delivery network and Instacart’s grocery-shopping technology as both companies look to compete more effectively with retail giants such as Walmart and Amazon.
The deal values Instacart at USD 65 per share, offering shareholders a 26% premium over its October 22 closing price. At least 75% of the payment will be made in cash, while shareholders can choose cash, DoorDash shares or a combination of both, subject to certain limits. The acquisition remains subject to shareholder and regulatory approval.
DoorDash built its business around restaurant deliveries but has gradually expanded into groceries and other everyday products. Acquiring Instacart would give it access to established grocery-delivery technology and relationships with retailers across the United States and Canada.
Instacart customers could gain access to more than 50,000 additional stores through DoorDash’s network, on top of the nearly 100,000 stores already available on Instacart’s platform, according to the companies.
The deal is also expected to bring together their membership programmes. DashPass and Instacart+ subscribers could access both services through a single membership fee, potentially saving customers money.
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DoorDash plans to retain Instacart’s brand, app and technology products after the acquisition closes. Both companies will continue operating independently while the transaction moves through the approval process.
DoorDash has additionally mentioned that local grocery stores will not be mandated to use their delivery service alone. Instacart shoppers will have the freedom to select which orders they wish to complete. This is all to be done with the aim of retaining current retailer connections as well as increasing customer and delivery flexibility.
The deal is expected to be completed either in the latter part of 2027 or the first half of 2028, subject to shareholder and regulatory approvals. This deal comes at a time when delivery platforms are facing stiff competition with increasing operational costs.