DoorDash announced on October 29 that it had agreed to buy grocery-technology company Instacart for about $17 billion. The deal would combine DoorDash’s delivery network with Instacart’s grocery technology and retailer relationships.
$17 billion cash-and-stock deal
DoorDash will pay $65 per Instacart share. At least 75% of the consideration will be in cash, and no more than 25% will be in DoorDash stock. The price represents a 26% premium to Instacart’s closing share price on October 22, according to DoorDash’s announcement. Reuters reported that the transaction would expand DoorDash’s grocery-delivery business.
More stores under one platform
Instacart partners with more than 2,200 retail banners representing nearly 100,000 stores. DoorDash says the combined company could give Instacart customers access to more than 50,000 additional stores while keeping Instacart’s brand, app, and enterprise technology products.
DoorDash also says DashPass and Instacart+ members could eventually use one membership instead of paying for both. The company estimates that change could save members about $100 million a year in fees. These are proposed benefits, not changes available immediately.
Regulators must approve closing
The agreement still needs approval from Instacart shareholders and regulators in the United States, Canada, and Israel. The companies expect the deal to close at the end of 2027 or during the first half of 2028, if those conditions are met. Until then, DoorDash and Instacart will continue operating as separate companies.
Because the deal would combine two major delivery platforms, it is likely to face antitrust review, Reuters reported. The transaction involves consumers, grocery chains, local stores, delivery workers, and Instacart shoppers. Instacart said its third-quarter gross transaction value grew 15% from a year earlier before announcing the agreement.
References
Associated Press. (2026, October 29). DoorDash will pay $17 billion for Instacart. AP News. https://apnews.com/article/doordash-instacart-delivery-d6f30f5d18c288eeba6babcb49260e06
DoorDash. (2026, October 29). DoorDash to acquire Instacart to help local stores win. DoorDash Investor Relations. https://ir.doordash.com/news/news-details/2026/DoorDash-to-Acquire-Instacart-to-Help-Local-Stores-Win/default.aspx
Instacart. (2026, October 29). Instacart announces third quarter 2026 financial results. Instacart Investor Relations. https://investors.instacart.com/News/news-releases/news-details/2026/Instacart-Announces-Third-Quarter-2026-Financial-Results/default.aspx
Vinn, M., & Mistry, A. B. (2026, October 29). DoorDash strikes $17 billion deal for US rival Instacart in mega grocery delivery bet. Reuters. https://www.investing.com/news/stock-market-news/doordash-strikes-17-billion-deal-for-us-rival-instacart-in-bets-on-grocery-delivery-4983482