DoorDash has agreed to acquire Instacart for approximately $17 billion, bringing restaurant delivery, grocery fulfillment and retail technology closer together in one of the biggest moves in online shopping this year.
The deal values Instacart at $65 per share, a 26% premium to its October 22 closing price before reports of a possible acquisition. At least 75% of the consideration will be cash, with DoorDash stock accounting for no more than 25%.
What DoorDash Gets
DoorDash has built a delivery network around meals and everyday purchases. Instacart brings grocery-specific fulfillment software, relationships with retailers and consumer brands, and an advertising business that reaches shoppers close to a purchase.
The plan is to offer those capabilities through both consumer apps and retailers' own websites. That includes grocery ordering systems, delivery logistics, advertising and AI tools. The companies say local stores will remain the sellers rather than handing the customer transaction to the platform.
Instacart is not being bought out of weakness. Its third-quarter gross transaction value grew 15% from a year earlier, while revenue increased 17%, according to results released the same day.
What Changes for Shoppers
DoorDash says Instacart customers could gain access to more than 50,000 additional stores beyond the nearly 100,000 already available on Instacart. It also plans to combine DashPass and Instacart+ into one membership, which it estimates could save members $100 million annually in fees.
Those are proposed post-acquisition benefits, not changes happening today. DoorDash says it intends to retain the Instacart brand, app and enterprise products. Local grocers would also remain free to work with competing delivery platforms, rather than face exclusive arrangements.
The Long Road to Closing
The transaction is expected to close in late 2027 or the first half of 2028. It still needs Instacart shareholder approval and regulatory clearances, including antitrust review in the United States and approvals in Canada and Israel.
Instacart's board has unanimously approved the deal, and holders of roughly 19% of its outstanding shares have agreed to support it. Until closing, both companies will continue to operate independently.
For DoorDash, the bigger opportunity is to become part of how local retailers run their digital storefronts, not just the company that delivers what's ordered.
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