DoorDash To Acquire Instacart For $17 Billion, Plans Unified Grocery Delivery Membership

DoorDash has announced a $17 billion deal to acquire rival grocery delivery platform Instacart, marking its biggest acquisition yet as it looks to strengthen its presence beyond restaurant delivery and expand into grocery shopping, retail technology, and local commerce.

The acquisition will bring together DoorDash's delivery network and Instacart's grocery fulfillment technology, potentially offering consumers more shopping options, consolidated memberships, and faster deliveries.

Here's what the companies announced.

TL;DR

 

• DoorDash has agreed to acquire Instacart in a deal valued at approximately $17 billion, offering shareholders $65 per share.
• The companies plan to combine grocery delivery capabilities, retailer technology, and membership benefits.
• DoorDash estimates that unified memberships could save customers $100 million annually.
• The deal is expected to close in late 2027 or the first half of 2028, subject to regulatory and shareholder approvals.

DoorDash Announces $17 Billion Instacart Acquisition

In the recent DoorDash announcement, DoorDash revealed that it had entered into a definitive agreement to acquire Maplebear Inc., the parent company of Instacart, for an equity value of approximately $17 billion.

Under the agreement, Instacart shareholders will receive consideration worth $65 per share, representing a 26% premium over the company's closing share price on October 22, 2026, before reports about a potential transaction emerged.

Source

The transaction will consist of at least 75% cash, while DoorDash shares will account for no more than 25% of the total consideration.

Instacart shareholders can elect to receive $65 in cash, 0.3372 DoorDash shares, or a combination of $48.75 in cash and 0.0843 DoorDash shares, subject to the agreement's allocation conditions.

As Reuters reported, this represents DoorDash's largest acquisition to date and marks another step in its expansion into grocery delivery and other retail categories.

The move could strengthen DoorDash's competitive position against established retailers such as Amazon and Walmart, which have invested heavily in their own logistics networks, grocery operations, and fulfillment infrastructure.

DoorDash And Instacart Plan Combined Membership Benefits And Retail Technology

The acquisition aims to bring together DoorDash's extensive delivery infrastructure with Instacart's grocery shopping technology, retailer relationships, advertising capabilities, and fulfillment solutions.

According to DoorDash, Instacart customers could gain access to more than 50,000 additional stores, on top of the nearly 100,000 stores already available through Instacart's platform.

One of the most significant proposed benefits involves the companies' subscription programs.

DoorDash plans to combine its DashPass and Instacart+ membership benefits, allowing subscribers to access both services through a single membership fee instead of maintaining two separate subscriptions.

The company estimates that this arrangement could save customers approximately $100 million annually in membership fees.

However, these are projected benefits following the acquisition, not immediate changes to existing subscription plans.

Beyond consumers, the companies expect to help local retailers strengthen their online operations through integrated ordering systems, grocery fulfillment capabilities, artificial intelligence (AI) tools, and advertising technology.

Grocers could use Instacart's enterprise technology to operate their own ecommerce platforms and advertising networks while accessing DoorDash's DashMart Fulfillment Services to handle additional orders.

DoorDash has also committed to allowing local grocers to continue working with competing delivery platforms without exclusivity requirements.

For delivery workers, the company expects the combination to create additional earning opportunities across grocery, restaurant, and retail orders.

Instacart shoppers would retain the flexibility to choose their working hours and whether to accept DoorDash orders or continue shopping exclusively through Instacart.

What Did DoorDash And Instacart CEOs Say?

DoorDash co-founder and CEO Tony Xu highlighted the challenges involved in online grocery fulfillment, particularly selecting fresh products, managing substitutions, and ensuring timely deliveries.

"Grocery is one of the hardest things to get right online," said Xu in the company's official announcement.

He explained that Instacart's grocery expertise and DoorDash's logistics infrastructure could help retailers of different sizes compete more effectively in online commerce.

Instacart CEO Chris Rogers also welcomed the agreement, pointing to the company's experience in helping grocers establish and grow their digital operations.

"Over the last 14 years, Instacart has transformed online grocery by helping retailers of all sizes compete and grow, and joining forces with DoorDash allows us to do even more," said Rogers.

The companies believe that combining their technology and retailer partnerships could make online grocery shopping more accessible and affordable.

DoorDash Faces Regulatory Scrutiny Over Instacart Acquisition

Despite the potential advantages, the acquisition is expected to face regulatory examination over its implications for competition in the US grocery delivery market.

According to Reuters, analysts at CFRA Research identified regulatory approval as the transaction's principal risk, noting that the extended closing timeline could indicate expectations of a prolonged antitrust review.

Reuters also reported that New York City's Department of Consumer and Worker Protection had expressed concerns about increasing corporate consolidation ahead of the formal announcement.

The combination would bring two major app-based delivery businesses under the same parent company, potentially raising questions about market competition, retailer relationships, and the businesses' delivery workers.

Meanwhile, TechCrunch reported that DoorDash intends to retain Instacart's existing brand, app, and enterprise technology products rather than immediately replacing them with DoorDash services.

Reuters also highlighted termination fees associated with the agreement. Under certain circumstances, Instacart would owe DoorDash $650 million if the transaction were terminated, while DoorDash could be required to pay $1.25 billion.

When Will DoorDash Complete The Instacart Acquisition?

DoorDash expects the transaction to close toward the end of 2027 or during the first half of 2028.

Completion remains subject to Instacart shareholder approval, US antitrust requirements, regulatory clearances in Canada and Israel, and other customary closing conditions.

The companies disclosed that shareholders representing approximately 19% of Instacart's outstanding shares have already agreed to support the transaction.

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

For now, the deal represents a significant move toward consolidating grocery delivery, retail technology, and last-mile logistics under one organization. Whether the proposed membership savings, retailer benefits, and expanded delivery opportunities materialize will depend on regulatory approvals and how the companies integrate their operations after closing.