DoorDash has agreed to acquire Instacart in a cash-and-stock transaction valued at approximately $17 billion. The DoorDash Instacart acquisition would combine two of the largest delivery platforms in North America.
The companies announced the definitive agreement Thursday, Oct. 29. However, the transaction still requires approval from Instacart shareholders and government regulators.
DoorDash Instacart Acquisition Terms
DoorDash agreed to pay $65 for each Instacart share. That price represents a 26% premium over Instacart’s closing price on Oct. 22, before reports about a possible deal emerged.
At least 75% of the transaction will be paid in cash. DoorDash stock can account for up to 25% of the total payment.
Instacart shareholders can choose cash, DoorDash shares or a combination of both. Final payments will depend on shareholder elections and the transaction’s stock limit.
Instacart’s board of directors unanimously approved the agreement. The deal is expected to close in late 2027 or during the first half of 2028.
The timeline depends on shareholder approval and regulatory reviews in the United States and other countries. Until the transaction closes, DoorDash and Instacart will continue operating as separate companies.
Instacart Brand and App Will Remain
DoorDash plans to maintain the Instacart name and app after completing the acquisition. Instacart specializes in grocery and convenience delivery across the United States and Canada.
The company works with approximately 600,000 independent shoppers. Those shoppers are expected to continue accepting and completing Instacart orders.
DoorDash began primarily as a restaurant delivery platform. It has since expanded into groceries, retail products, pet supplies and electronics.
The combined company would offer delivery from restaurants, supermarkets, convenience stores and other retailers. It would also connect Instacart customers with about 50,000 additional stores currently available through DoorDash.
Membership Changes Could Follow
DoorDash operates its DashPass membership program, while Instacart offers Instacart+. Each service currently costs $9.99 per month and includes delivery benefits.
DoorDash said customers could eventually receive benefits from both programs under one membership fee. The companies have not announced when that change might begin.
Current customers should not expect immediate changes to either platform. The companies will remain independent throughout the approval process.
DoorDash and Instacart also plan to preserve choices for grocery stores and other retailers. Merchants could continue selecting the delivery platform and technology that best fit their operations.
Deal Expands DoorDash’s Grocery Business
The acquisition would strengthen DoorDash’s position in online grocery delivery. DoorDash has expanded its grocery partnerships since entering the sector in 2020.
Its platform now includes major retailers such as Kroger and Costco. Instacart already provides delivery, advertising and online shopping technology to supermarkets across North America.
Combining the companies would give DoorDash access to Instacart’s grocery fulfillment systems and retail advertising business. Instacart would gain access to DoorDash’s larger international delivery network.
The transaction could also create more delivery opportunities for DoorDash drivers and Instacart shoppers. However, the companies have not announced specific changes to worker compensation or platform policies.
Government regulators will review how the acquisition could affect competition, retailers, workers and consumers. The Instacart brand and service will remain unchanged while that process continues.