DoorDash has agreed to acquire Instacart in a deal worth about $17 billion, the companies announced on Thursday. The deal is expected to close at the end of 2027 or in the first half of 2028. It values Instacart at $65.00 per share, a 26% premium over its closing price on 22 October, and will be at least 75% cash.
The merger would pair DoorDash’s strength in restaurant delivery with Instacart’s grocery partnerships. Instacart CEO Chris Rogers said the combined company can speed up innovation and make online grocery more seamless and affordable.
DoorDash and Instacart Join Forces to Take On Amazon and Uber in Grocery Delivery
DoorDash has been growing its grocery business since the pandemic and now works with dozens of grocers. CEO Tony Xu said earlier this year that this gives it a selection rivalling Amazon’s with less infrastructure.
Instacart, founded in 2012, has focused on groceries from the start. It works with thousands of North American retailers and also sells retail technology such as digital price tags and smart shopping carts.
The companies said Instacart customers could shop at more than 50,000 additional stores, and that DashPass and Instacart+ members would pay one membership fee, not two.
The deal positions the combined company against Amazon and Uber, both of which are pushing into grocery delivery. Like Uber, DoorDash and Instacart rely on gig workers who are independent contractors, and most don’t receive benefits such as health insurance.
