DoorDash agrees to acquire Instacart in $17 billion deal

# DoorDash to Acquire Instacart in $17 Billion Deal to Expand Grocery and Local Delivery Business

DoorDash has agreed to acquire grocery-delivery platform Instacart in a transaction valued at approximately $17 billion, bringing together two major companies in the food and local commerce industry. The announcement on October 29 confirmed earlier reports that the companies were negotiating a potential acquisition.

Under the definitive agreement, DoorDash will acquire Maplebear Inc., Instacart’s parent company, for $65 per share. The offer represents a 26% premium over Instacart’s closing stock price on October 22, the final trading day before reports of a possible deal emerged.

At least 75% of the transaction consideration will be paid in cash. Instacart shareholders can choose cash, DoorDash shares or a combination of both, although DoorDash stock will account for no more than 25% of the total consideration. Instacart’s board unanimously approved the agreement.

## Combining Grocery Technology With a Large Delivery Network

The acquisition is expected to combine DoorDash’s extensive delivery network with Instacart’s grocery marketplace, fulfillment technology and established relationships with retailers and consumer brands.

DoorDash said the combined platform could provide local businesses with technology and delivery capabilities that have traditionally been developed by larger retailers. Instacart currently operates across nearly 100,000 stores, and DoorDash expects the acquisition to give its customers access to more than 50,000 additional locations.

The companies also plan to integrate their membership benefits. Under the proposed arrangement, DashPass and Instacart+ subscribers could access both services through a single membership payment rather than maintaining separate subscriptions. DoorDash estimates that the combined offering could save members approximately $100 million annually in membership fees.

DoorDash co-founder and CEO Tony Xu said the partnership could help businesses of different sizes access more delivery and technology solutions. He described the combination as an opportunity to expand grocery delivery and strengthen support for local retailers.

Instacart CEO Chris Rogers said the agreement would bring together the company's grocery technology and retailer relationships with DoorDash's consumer reach and logistics capabilities.

The companies also expect the transaction to create additional earning opportunities for delivery workers through grocery and restaurant orders. Instacart Shoppers will continue to have the flexibility to determine their working hours and select the orders they want to accept.

## Instacart to Retain Its Brand and App

DoorDash expects to preserve Instacart's brand, mobile application and enterprise technology products following the acquisition. Both companies will continue operating independently until the transaction receives the necessary approvals and closes.

DoorDash has also stated that its grocery-delivery platform will remain open to retailers that work with competing delivery services. Local grocery businesses will not be required to enter exclusive arrangements with DoorDash.

The proposed acquisition reflects the growing competition among delivery companies to expand beyond restaurant orders and capture a larger share of grocery and everyday retail spending. DoorDash has been increasing its presence in grocery and local deliveries, while Instacart has developed a business connecting consumers with grocery stores and providing technology for online shopping.

The combination could strengthen DoorDash's position in grocery delivery while expanding its access to Instacart's retail technology and advertising operations. It would also place the combined company in closer competition with major retail and e-commerce businesses, including Walmart and Amazon.

Reuters reported that the acquisition would represent DoorDash's largest deal to date, as delivery companies face increasing competition, rising operating costs and pressure to identify additional sources of growth.

## Regulatory Review and Shareholder Approval Remain

The transaction is expected to close in late 2027 or during the first half of 2028, subject to approval from Instacart shareholders, antitrust reviews and other regulatory clearances, including in Canada and Israel.

According to the companies, shareholders representing approximately 19% of Instacart's outstanding shares have already agreed to vote in favor of the transaction.

DoorDash plans to fund the cash portion using its existing cash reserves and debt financing. It has secured a commitment from JPMorgan Chase Bank for a 364-day senior unsecured bridge loan facility to support the financing requirements.

The company said the agreement does not include a financing condition. However, completion remains dependent on customary closing requirements and regulatory approvals, meaning the anticipated timeline could change if reviews or other conditions cause delays.

Until the transaction is completed, DoorDash and Instacart will continue operating as separate businesses.

If finalized, the acquisition would combine two significant players in the U.S. food and grocery delivery market, giving DoorDash a broader retail presence and access to Instacart's established grocery technology and retailer network.