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DoorDash and Instacart announced a definitive agreement for DoorDash to acquire Instacart at $65 per share, an equity value of about $17 billion. The deal is at least 75% cash, with shareholders able to elect cash, DoorDash stock or both, subject to limits and proration. The companies say the combination would expand grocery delivery choices, but the closing date and regulatory outcome are not provided in the announcement.
DoorDash has agreed to acquire Instacart in a transaction valuing the grocery delivery company at about $17 billion, the companies announced. DoorDash will pay $65 for each Instacart share, with the total consideration at least 75% cash; the deal still must close before the companies can combine their operations.
The $65-per-share price represents a 26% premium to Instacart’s closing share price on October 22, 2026, according to DoorDash’s announcement. Instacart shareholders may elect to receive cash, DoorDash stock or a combination, subject to proration. DoorDash stock cannot make up more than 25% of the aggregate consideration. Instacart’s board unanimously approved the agreement.
DoorDash says the combined company would bring together its delivery network with Instacart’s grocery and fulfillment technology. The companies expect to serve retailers through their apps and through stores’ own websites, as well as combine advertising and artificial-intelligence tools. DoorDash says Instacart’s brand, app and enterprise technology products are expected to remain in place after closing; until then, both companies will continue operating separately.
DoorDash’s announced customer and worker commitments include giving DashPass and Instacart+ members access to both memberships for one fee. The company estimates that this would save members $100 million annually in membership fees. DoorDash also says Instacart customers could gain access to more than 50,000 additional stores, beyond the nearly 100,000 already on Instacart’s platform. Those are company projections, not results already delivered.
A Larger Grocery Delivery Network
The deal would join two major delivery platforms with different strengths: DoorDash’s logistics and broader local-commerce reach, and Instacart’s grocery-focused technology and retailer relationships. If completed, that combination could change how grocery stores offer online ordering and delivery, particularly for retailers that do not have the resources to build their own technology and delivery systems.
For consumers, the proposed additions could mean more participating stores and delivery options. For local grocers, DoorDash says the arrangement would provide access to fulfillment, online storefront and advertising tools. The companies also say Dashers and Instacart Shoppers could have more types of orders to choose from. Those potential benefits depend on how the services are implemented and whether the transaction closes.
The scale of the proposed combination also makes the companies’ commitments relevant to retailers and workers. DoorDash says grocers would remain free to use competing delivery platforms and that Instacart Shoppers could retain the ability to choose which batches to accept, including whether to take DoorDash orders. The announcement does not detail how those policies would be enforced after closing.
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DoorDash and Instacart’s Different Roles
DoorDash’s announcement describes the companies as serving overlapping but distinct shopping needs: customers often use Instacart for larger grocery shops and DoorDash for restaurant meals and other local purchases. Instacart has built technology for grocery retailers, including online ordering and fulfillment tools, while DoorDash operates a delivery network used by local businesses.
The companies frame the deal as a way for smaller retailers to compete online with larger companies that can invest in delivery operations, warehouses, memberships and shopping technology. That is the rationale offered by DoorDash and Instacart; the announcement does not establish how much the merger would improve retailers’ costs, sales or competitiveness.
The proposed terms include an important ownership choice for Instacart shareholders: at least three-quarters of the consideration will be cash, while DoorDash stock is capped at one-quarter of the total. The $65 offer is measured against Instacart’s October 22 closing price, as specified in the company’s announcement.
““Instacart has spent years learning to do that well for grocers, while DoorDash has built a delivery network and technology that local stores rely on every day.””
— Tony Xu, DoorDash co-founder and CEO
Closing Conditions and Integration Details
The announcement does not give a closing date or spell out the remaining transaction conditions, including any regulatory review or shareholder approval steps. It also does not describe whether the companies expect changes to staffing, fees, delivery operations or their commercial relationships with specific retailers and brands.
DoorDash’s projected customer and worker benefits remain forward-looking claims. The announcement does not provide independent estimates of how many customers would use the combined membership, how the added store access would work in practice, or how additional orders would affect workers’ earnings. More detail will be needed to assess the deal’s effects on competition and on stores’ ability to choose among delivery providers.
Awaiting Deal Review and Closing
DoorDash and Instacart will continue to operate as separate companies while the transaction is pending. The next milestones are the completion of applicable review and approval processes and satisfaction of the agreement’s closing conditions; the announcement does not specify their timing.
If the deal closes, DoorDash says it expects to retain Instacart’s brand, app and enterprise technology products. The companies would then need to explain how customers, retailers, Dashers and Shoppers can use the combined services, including how the shared membership offer and expanded store access will work. Until those details are available, the stated benefits remain plans rather than current changes.
Key Questions
How much is DoorDash offering for Instacart?
DoorDash has agreed to pay $65 per Instacart share, valuing the company’s equity at about $17 billion. The price is a 26% premium to Instacart’s October 22, 2026 closing price, according to DoorDash.
How will Instacart shareholders be paid?
At least 75% of the total consideration will be cash. Shareholders may elect cash, DoorDash stock or a combination, subject to proration; DoorDash stock cannot exceed 25% of the aggregate consideration.
When will the acquisition close?
The announcement does not give a closing date. The companies will operate independently until the transaction closes after the required conditions and reviews are completed.
What changes are planned for customers and workers?
DoorDash says eligible DashPass and Instacart+ members would receive both memberships for one fee, and Instacart customers could gain access to more than 50,000 additional stores. It also says Shoppers could keep choosing which batches to accept. These are proposed post-close commitments, not changes that have taken effect.
Source: about.doordash.com
