DoorDash to Acquire Instacart in a Deal Worth About $17 Billion

DoorDash has agreed to acquire its US rival Instacart for about $17 billion, the company announced. It is the largest acquisition in DoorDash's history and a clear step beyond restaurant delivery as the company looks to compete harder with Amazon and Walmart.

Deal terms

DoorDash will pay $65 per Instacart share, a premium of about 26 percent to the closing price on October 22. At least 75 percent of the total consideration will be paid in cash. Within set limits, Instacart shareholders can choose cash, DoorDash stock or a combination of the two.

Instacart's market value was above $13 billion before the announcement, and its shares have risen 25 percent since the start of the year.

What changes for shoppers and retailers

DoorDash plans to keep Instacart's brand, app and enterprise technology products. It wants to combine its own delivery network with Instacart's grocery technology to help retailers grow online ordering and advertising. Grocers will still be able to work with other delivery platforms.

For consumers, DashPass and Instacart+ memberships are expected to be offered under a single fee. DoorDash estimates this could save members a combined $100 million a year in membership costs. Instacart users would also gain access to more than 50,000 additional stores on top of the roughly 100,000 already on the platform.

Market context

The deal comes as growth in restaurant delivery slows and companies push into grocery and other retail categories, where competition and cost pressure are rising. Instacart also held early talks with Uber, according to a source who spoke to Reuters. That source said Uber's agreement a few months ago to buy Germany-based Delivery Hero for $14.8 billion influenced its decision not to pursue a deal.

What comes next

The merger is expected to face an extensive antitrust review. Closing depends on approval from Instacart shareholders and regulators, and is expected at the end of 2027 or in the first half of 2028. Until then, DoorDash and Instacart will continue to operate independently.