DoorDash to Acquire Instacart in $17 Billion Grocery Deal

DoorDash has announced it will acquire Instacart in a deal valued at roughly $17 billion, a major move to expand its footprint in online grocery delivery. The company says it expects the transaction to close "in the end of 2027 or the first half of 2028," pending regulatory approvals and other closing conditions.

DoorDash, which began as a restaurant courier service, already runs a grocery business, but it faces competition from Instacart, Uber, Walmart and Amazon. Buying Instacart gives it an established grocery marketplace and a network of retailer partnerships. DoorDash says Instacart users will gain access to more than 50,000 additional stores, and that DashPass and Instacart Plus members will be able to "pay one membership fee instead of two."

What changes, and what doesn't

After closing, DoorDash says it will keep Instacart's brand, enterprise technology products and app, so the two services will stay separate rather than merge into one platform. It also made post-close commitments: local grocers will not be bound by platform exclusivity and can work with either delivery service. Instacart shoppers will keep flexibility over their hours and the orders they accept, and can choose whether to take DoorDash orders or continue shopping only for Instacart.

DoorDash CEO Tony Xu said grocery is "one of the hardest things to get right online," adding that combining Instacart's experience with grocers and DoorDash's delivery network could give stores of every size more tools. Instacart CEO Chris Rogers said the deal will make "online grocery more seamless and affordable" for millions of households.

Competitive pressure

DoorDash argues that the largest online retailers are building their own fleets, warehouses, membership programs and AI shopping assistants, which thin-margin grocers cannot match alone. The company also has reason to diversify because rivals are moving into food delivery, where Uber has acquired Postmates and Delivery Hero.

Speculation began last week, when reports said Instacart was in talks with Uber and DoorDash about a sale. The long timeline to closing leaves room for shareholders and regulators to weigh in on the deal.