DoorDash to Acquire Instacart in $17 Billion Grocery Delivery Deal

DoorDash plans to buy Instacart for approximately $17 billion, the companies announced Thursday, in one of the largest consolidation moves the e-commerce and grocery technology sector has seen.

The transaction values Instacart at $65 per share — a 26% premium to its closing stock price on Oct. 22 — and is expected to close at the end of 2027 or in the first half of 2028. Instacart's board of directors has unanimously approved the agreement.

The price is roughly a quarter of DoorDash's own heft. At approximately $78 billion, DoorDash's market capitalization is about five times Instacart's roughly $14 billion, according to Yahoo Finance.

What does the deal hand DoorDash?

The acquisition gives DoorDash access to Instacart's grocery partnerships, its e-commerce capabilities, its millions of users — and a sizable retail media business. Instacart's advertising and other revenue totaled $331 million in its third quarter, accounting for roughly 30% of the company's total revenue.

DoorDash will also absorb Instacart's fleet of more than 600,000 delivery couriers.

DoorDash said it expects to retain Instacart's brand, enterprise technology products and app. Until the transaction closes, the companies will continue to operate separately.

The combined scale is notable. DoorDash posted nearly $4.6 billion in Q3 revenue — roughly four times Instacart's. Over the last three years, both companies have consistently recorded year-over-year quarterly growth in orders and revenue.

How will the deal be paid for?

The aggregate transaction consideration will be at least 75% cash, according to the announcements. Instacart stockholders can elect cash, DoorDash stock or a combination of both, subject to proration so that DoorDash stock does not exceed 25% of the aggregate consideration.

DoorDash said the deal would give consumers more choice and savings opportunities in delivery, while delivery couriers get more opportunities to earn money.

Why are the two companies combining?

In announcing their plans to combine, DoorDash and Instacart said the acquisition would help their retailer partners, both large and small, better reach customers with innovative technology.

The two companies have converged from opposite starting points. Founded in 2013, DoorDash initially grew as a restaurant delivery provider and expanded into grocery and nonfood delivery in recent years. Founded in 2012, Instacart started in grocery e-commerce before expanding into in-store technology like digital shelf labels and smart carts, building a food-as-medicine initiative called Instacart Health, and adding restaurant and nonfood retailers as delivery partners.

Both companies have also worked on grocery affordability. Instacart has said it is pushing its retailer partners to match their online prices with those in their stores. DoorDash has rolled out consumer-facing tools to make it easier for shoppers to find savings or understand what their grocery bill will look like.

At Groceryshop in September, top executives at both companies said addressing the cost concerns that have long plagued grocery e-commerce is becoming a pressing issue for the grocery industry amid ongoing consumer price sensitivity.

What happens next?

Both companies moved up the release of their third-quarter earnings results. DoorDash hosted an earnings call Thursday. Instacart cancelled its call.

With regulatory review ahead and a closing window stretching as far as the first half of 2028, DoorDash and Instacart will operate as rivals-turned-siblings in the meantime — competing for grocery orders while an integration that will reshape online grocery and retail media waits on the other side.