DoorDash to buy Instacart for $17 billion in all-stock deal
DoorDash announced a $17 billion acquisition of Instacart at $65 per share, uniting two major US grocery delivery platforms with closing expected in late 2027 or 2028.
What you need to know
DoorDash said Thursday it will acquire Instacart for $17 billion, paying $65 per share, in a deal that combines its delivery network with Instacart's grocery marketplace. DoorDash said the companies will operate separately until the merger closes, expected in late 2027 or early 2028, pending regulatory approvals.
- DoorDash will pay $65 per share for Instacart in a deal valued at $17 billion.
- DoorDash said Instacart customers could gain access to more than 50,000 additional stores.
- DoorDash expects the merger to close in end of 2027 or first half of 2028, subject to approvals.
- DoorDash said it plans to keep Instacart's brand, technology and app after closing.
- DoorDash's most recent earnings showed revenue up 34% year over year.
Deal terms and structure
DoorDash announced Thursday that it will acquire Instacart for $17 billion, paying $65 per share. The all-stock structure was disclosed in DoorDash's announcement, and the companies will operate as separate entities until the merger is finalized.
The transaction is expected to close in late 2027 or the first half of 2028, subject to regulatory approvals and other closing conditions. After closing, DoorDash said it plans to maintain Instacart's brand, enterprise technology products and app rather than merging the services into one platform.
Grocery reach and competition
DoorDash said Instacart customers could shop at more than 50,000 additional stores on top of the roughly 100,000 stores already on Instacart's platform. The company also said DashPass and Instacart Plus members could pay one membership fee instead of two.
In post-close commitments, DoorDash said local grocers would not be limited by platform exclusivity and Instacart shoppers would retain flexibility over working hours and which orders to accept. DoorDash framed the deal as a response to competition from large online retailers and grocers building their own delivery fleets, warehouses and membership programs.
Instacart, founded in 2012, specializes in grocery and convenience delivery in the U.S. and Canada. DoorDash, founded a year later in San Francisco, began as a restaurant-delivery business and expanded into grocery in 2020. Its most recent earnings report showed revenue grew 34% from a year earlier, with orders up 28%.
Scale and market position
DoorDash has a market value of $73 billion, according to the announcement. By the end of 2024, DoorDash held nearly 61% of the food delivery market share, ahead of Uber Eats at around 26% and Grubhub at around 6%, according to Consumer Edge, a market research company.
DoorDash CEO Tony Xu said in a statement that combining the companies could give stores of every size more tools and unlock the potential of grocery delivery.
When is the DoorDash-Instacart deal expected to close?
DoorDash said the merger is expected to close in late 2027 or the first half of 2028, subject to regulatory approvals and other closing conditions. Until then, the companies will operate as separate entities.
Sources & context
- DoorDash gobbles up Instacart in $17 billion deal ↗CBS News
- DoorDash is acquiring Instacart for $17 billion ↗The Verge
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