DoorDash has agreed to acquire Instacart for $17 billion in a cash-and-stock deal that would unite the two largest U.S. players in on-demand delivery. The transaction, announced Thursday, values Instacart at $65 per share, a 26 percent premium to its closing price on October 22 before reports of the potential deal surfaced.
The Structure Of The Deal
The agreement consists of at least 75 percent cash with the remainder in DoorDash stock. Instacart stockholders may elect to receive cash, DoorDash shares, or a combination, provided the aggregate stock portion does not exceed 25 percent of DoorDash’s outstanding shares. DoorDash said it will fund the cash portion with existing cash on hand and new debt. The boards of both companies have approved the transaction, which still requires approval from Instacart shareholders and regulators.
Combining Logistics With Grocery Expertise
The merger joins DoorDash’s expansive logistics network with Instacart’s specialized grocery technology and retailer relationships. Instacart, formally Maplebear Inc., operates a grocery delivery and pick-up service in the United States and Canada that relies on personal shoppers to pick, pack, and deliver orders. DoorDash, which generated $13.72 billion in revenue last year compared to Instacart’s $3.75 billion, has been pushing aggressively beyond its restaurant delivery roots into retail and grocery.
“Grocery is one of the hardest things to get right online,” DoorDash CEO Tony Xu said in a press release. “Someone has to pick a ripe avocado, find a substitute you’d choose yourself, and get the ice cream to you before it melts. Instacart has spent years learning to do that well for grocers, while DoorDash has built a delivery network and technology that local stores rely on every day.”
Instacart CEO Chris Rogers said the combination allows the company to do even more for retailers and shoppers. “When our purpose-built grocery technology and trusted retailer and brand relationships are combined with DoorDash’s global consumer reach and logistics capabilities, we can create new opportunities for our retail and brand partners,” Rogers said.
Market Reach And Competitive Position
The combined entity would offer a selection from about 150,000 stores, roughly three times what DoorDash currently offers. DoorDash plans to keep the Instacart brand, app, and enterprise technology products operating separately until the transaction closes, which is not expected until late 2027 or the first half of 2028.
Despite the scale of the combination, Walmart and Amazon remain the leaders in grocery delivery in the U.S. According to credit and debit card data from Consumer Edge, DoorDash held a 59 percent share of spending across major delivery apps in the third quarter of 2026, while Instacart and Uber Eats each held 18 percent. Those figures cover all delivery categories, not just groceries. Xu told analysts there is a path to $500 million in annual synergies from the deal in coming years, driven by a denser delivery network and improved efficiencies.
Regulatory Hurdles And Timeline
The deal is expected to face significant regulatory scrutiny given the companies’ dominant positions in third-party grocery delivery. The extended timeline — pushing the expected close to late 2027 or early 2028 — reflects the complexity of securing antitrust clearance. Bloomberg previously reported that Instacart had held talks with Uber, but those discussions ended before the DoorDash agreement was reached.
A Pattern Of Consolidation
The acquisition continues a wave of consolidation in the food delivery sector. DoorDash completed its purchase of British delivery company Deliveroo in 2025 following court approval, expanding its global footprint. It also acquired Finnish delivery company Wolt in an all-stock deal in 2022, extending its presence to 27 countries at the time. More recently, DoorDash acquired reservations platform SevenRooms and Grubhub’s campus dining business. The Instacart deal, if completed, would represent the largest step yet in DoorDash’s strategy to build a comprehensive local commerce platform.
Sources
- DoorDash to acquire Instacart for $17B
- DoorDash to acquire Instacart for $17B | TechCrunch
- DoorDash in advanced talks to acquire Instacart in potential $17B deal: report
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