DoorDash is acquiring Instacart for $17B

DoorDash has agreed to acquire Instacart in a deal valuing the grocery technology company at about $17 billion, or $65 per share - a 26% premium to its October 22 closing price. Instacart shareholders may elect cash, DoorDash shares, or a mix, though at least 75% of the total consideration will be cash and stock is capped at 25%. DoorDash plans to fund the cash portion with cash on hand and borrowing. The acquisition still requires shareholder and regulatory approvals and is expected to close in late 2027 or the first half of 2028; the companies will operate independently until then.

The companies argue that combining DoorDash’s delivery network and consumer reach with Instacart’s grocery fulfillment, retail technology, and advertising tools will help local stores compete with large online retailers. DoorDash says Instacart customers could gain access to more than 50,000 additional stores, while DashPass and Instacart+ members would receive both memberships for one fee, saving an estimated $100 million annually. The companies also expect expanded ordering to create more earning opportunities for Dashers and Instacart Shoppers. After closing, Instacart is expected to retain its brand, app, and enterprise products. DoorDash has committed to keeping the platform open to grocers that work with competing delivery services and preserving Shoppers’ flexibility, including the option to accept DoorDash orders or remain exclusive to Instacart.