DoorDash to acquire Instacart in $17bn deal

The agreement values Instacart at $65 per share, with at least 75 percent of the consideration payable in cash.

DoorDash has agreed to acquire grocery delivery platform Instacart in a transaction valued at approximately $17 billion, bringing together two major players in the US on-demand delivery market.

Under the terms of the agreement, Instacart shareholders can elect to receive cash, DoorDash shares or a combination of both, subject to a limit on stock consideration. DoorDash shares will account for no more than 25 percent of the total transaction value. Instacart's board of directors has unanimously approved the agreement.

DoorDash and Instacart combine delivery and grocery technology

The acquisition will bring together DoorDash's delivery network and Instacart's grocery technology and fulfilment capabilities. The combined business aims to offer grocers and retailers access to delivery services, online ordering infrastructure, advertising solutions and artificial intelligence tools across both platforms and retailers' own websites.

The companies expect the agreement to expand consumer choice, improve delivery options and create additional earning opportunities for delivery workers. Customers will be able to order from more local businesses, while retailers will retain control over their sales through their own stores and platforms.

Tony Xu, co-founder and CEO, DoorDash: "Grocery is one of the hardest things to get right online. 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. Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery. It’s still early innings, but we know that when more people shop local, more dollars stay local."

Acquisition targets growth in online grocery retail

The companies said the transaction will help local retailers compete with large online retailers and grocery businesses investing in delivery networks, warehouses, membership programmes and AI-powered shopping services.

Through the combined offering, grocers could use Instacart's technology to operate their own e-commerce platforms and retail media networks. They would also gain access to DoorDash's DashMart Fulfillment Services to support online order capacity and delivery.

Chris Rogers, CEO, Instacart: "Over the last 14 years, Instacart has transformed online grocery by helping retailers of all sizes compete and grow, and joining forces with DoorDash allows us to do even more. 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, offer an even better experience for customers and shoppers, and deliver compelling value for our shareholders. Together, we can accelerate innovation across the grocery industry and make online grocery more seamless and affordable for the millions of households we serve."

Combined platform promises benefits for customers and workers

DoorDash expects the transaction to deliver several benefits for consumers, retailers and delivery workers. Instacart customers could gain access to more than 50,000 additional stores, complementing the nearly 100,000 stores already available through its platform.

The companies also plan to combine their subscription benefits. DashPass and Instacart+ members would pay a single membership fee instead of maintaining two separate subscriptions. DoorDash estimates this could save members approximately $100 million annually in membership fees.

The agreement also aims to expand earning opportunities for DoorDash delivery workers, known as Dashers, and Instacart Shoppers. Workers would have more opportunities to choose between grocery and restaurant deliveries, depending on their preferences and availability.

DoorDash outlines commitments to local retailers

DoorDash has committed to keeping its platform open to local grocery retailers, allowing them to work with competing delivery services rather than requiring exclusivity.

Instacart Shoppers will also retain access to features supporting their working arrangements, including the flexibility to choose their hours and the information needed to decide which orders to accept. They will be able to choose whether to take DoorDash orders or continue working exclusively through Instacart.

Following completion of the acquisition, DoorDash expects to retain the Instacart brand, its enterprise technology products and its consumer app. Both companies will continue operating independently until the transaction closes.

$17bn transaction expected to close by 2028

The $65 per-share offer represents a 26 percent premium to Instacart's closing share price on 22 October 2026, the last trading day before media reports about a potential transaction.

DoorDash expects to finance the cash component through existing cash reserves and debt financing. It has secured a financing commitment from JPMorgan Chase Bank for a 364-day senior unsecured bridge loan facility. The agreement is not subject to a financing condition, and DoorDash intends to maintain an investment-grade capital structure.

The acquisition is expected to close towards the end of 2027 or during the first half of 2028, subject to approval by Instacart shareholders, regulatory clearances and other customary closing conditions. These include antitrust review under the Hart-Scott-Rodino Act in the United States and regulatory approvals in Canada and Israel.

Shareholders representing approximately 19 percent of Instacart's outstanding shares have agreed to vote in favour of the transaction.

www.doordash.com

www.instacart.com

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