DoorDash announced plans to acquire Instacart in an all-stock and cash deal valued at $17 billion, the companies confirmed Thursday. The transaction values Instacart at $65 per share, a 26% premium over its October 22 closing price. Shareholders will receive payment options including cash, DoorDash stock, or a combination of both, with 75% of the deal paid in cash.
DoorDash stock rose more than 9% in pre-market trading following the announcement, while Instacart’s stock edged lower. The deal is expected to close by the end of 2027 or early 2028, and both companies will operate independently until then.
Combined platform expansion
The acquisition merges DoorDash’s restaurant delivery network with Instacart’s grocery partnerships, creating a single platform that could serve a broader range of consumer needs. Instacart customers will gain access to more than 50,000 additional stores, while DashPass and Instacart+ members will pay one membership fee instead of two. DoorDash CEO Tony Xu stated in a press release that the deal aims to “give stores of every size more of those tools and unlock the potential of grocery delivery.”
Industry consolidation trend
The agreement reflects ongoing consolidation in the delivery sector, following DoorDash’s 2023 acquisition of UK-based Deliveroo and Uber’s earlier purchases of Postmates and Delivery Hero. Analysts suggest the combined entity could better compete against Walmart and Amazon, which currently lead the online grocery market with respective shares of 30.9% and 23.6% as of recent data.
Strategic rationale and market context
DoorDash has expanded beyond food delivery in recent years, partnering with retailers such as Sephora, Macy’s, and Staples. Instacart, which went public in 2023, saw rapid growth during the pandemic but has faced increased competition from Amazon and Walmart in the grocery delivery space. The deal is expected to generate cost efficiencies through workforce reductions and shared operational expenses, though specific savings figures were not disclosed.
Both companies emphasized that Instacart’s brand and technology will be retained post-acquisition. Instacart CEO Chris Rogers said the merger would “accelerate innovation across the grocery industry and make online grocery more seamless and affordable.”