DoorDash has agreed to acquire rival delivery service Instacart in a blockbuster transaction valued at approximately $17 billion.
The acquisition would combine DoorDash’s extensive delivery network with Instacart’s grocery-ordering technology and relationships with retailers. According to the companies, the arrangement could give Instacart customers access to approximately 50,000 additional stores while helping local grocers expand online ordering, delivery and advertising services. DoorDash also plans to retain Instacart’s name, app and enterprise technology products following the transaction
Under the terms of the agreement, Instacart shareholders can elect to receive $65 in cash per share, DoorDash stock or a combination of cash and stock, subject to allocation limits. At least 75% of the overall consideration will be paid in cash. The companies expect the deal to close in late 2027 or the first half of 2028, pending shareholder approval and regulatory clearance. Until then, both businesses will continue operating independently.
The strategic combination aligns with DoorDash Chief Executive Tony Xu’s broader vision to transform the platform into a comprehensive destination for local commerce. Explaining the complexities of the industry, Xu noted in a press release that “Grocery is one of the hardest things to get right online,” adding that “Someone has to pick a ripe avocado, find a substitute you’d choose yourself, and get the ice cream to you before it melts.”
Highlighting the complementary strengths of the two tech giants, Xu emphasized that “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.” He further stated that “Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery.” Company leadership also noted that Instacart has cultivated a uniquely devoted consumer base, with Xu pointing out that “Instacart has built a great brand, and it is a very unique brand where their audience is very loyal to that brand.”
While DoorDash built its massive user base primarily through restaurant meal takeouts, the purchase significantly accelerates its footprint in online supermarket deliveries, countering intensifying pressure from retail giants like Walmart and Amazon. Pending regulatory approvals and closing conditions, the transaction is anticipated to be finalized in late 2027 or early 2028. Until that time, both corporations will function completely independently. Once the merger concludes, leadership plans to preserve the standalone Instacart application, brand identity, and underlying technology.
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