DoorDash has entered into a definitive agreement to acquire rival delivery platform Instacart in a transaction valued at approximately $17 billion. The deal represents DoorDash’s largest acquisition to date as it aggressively expands its footprint beyond restaurant delivery and into the competitive online grocery and retail sector.
Under the terms of the agreement, Instacart stockholders will receive $65.00 per share, representing a 26% premium over the company’s closing stock price on October 22, 2026. The consideration will consist of at least 75% cash, with the remainder payable in DoorDash common stock, subject to proration mechanics ensuring stock issuance does not exceed 25% of the total payout. DoorDash plans to finance the cash portion through existing reserves and debt financing, supported by a bridge facility arranged by JPMorgan Chase. Instacart’s board of directors has unanimously approved the transaction.
The strategic combination aims to merge DoorDash’s extensive logistics network with Instacart’s specialized grocery fulfillment technology, enterprise tools, and retail advertising ecosystem. Together, the combined platform intends to help local grocers and retailers compete against major e-commerce giants that maintain proprietary logistics and artificial intelligence capabilities. Following completion, DoorDash plans to retain Instacart’s brand, consumer app, and enterprise services. Additionally, the companies plan to integrate their respective subscription services, combining DashPass and Instacart+ into a single unified membership.
To address potential antitrust scrutiny, DoorDash announced post-closing commitments, including an open-platform policy that prohibits mandatory grocery delivery exclusivity and guarantees continued operational flexibility for gig economy workers. The transaction is subject to customary closing conditions, approval by Instacart shareholders, and antitrust clearances across multiple jurisdictions, including the United States, Canada, and Israel. Given expected regulatory reviews under the Hart-Scott-Rodino Act, the companies anticipate closing the transaction between late 2027 and the first half of 2028.