DoorDash has entered a definitive agreement to acquire Instacart for $65.00 per share, an equity value of approximately $17 billion, uniting the two largest third-party platforms in U.S. grocery delivery. The price represents a 26 percent premium to Instacart’s closing price on Oct. 22, the last trading day before media reports of a possible transaction, and Instacart’s board has unanimously approved the agreement.
The consideration will be at least 75 percent cash, with Instacart stockholders able to elect cash, DoorDash stock or a mix. The transaction is expected to close at the end of 2027 or in the first half of 2028, subject to Instacart stockholder approval, antitrust clearance under Hart-Scott-Rodino and other regulatory approvals, including in Canada and Israel. Stockholders holding about 19 percent of Instacart’s shares have agreed to vote in favor.
What the companies are promising grocers
The combined company says it will offer grocers and retailers of every size DoorDash’s delivery network and Instacart’s grocery and fulfillment technology, in both apps and on stores’ own websites, along with each company’s advertising and AI tools. The companies frame the deal as arming local retailers against the largest online players, which are building their own delivery fleets, warehouses, membership programs and AI shopping assistants.
“Grocery is one of the hardest things to get right online. Someone has to pick a ripe avocado, find a substitute you’d choose yourself and get the ice cream to you before it melts,” said Tony Xu, co-founder and CEO of DoorDash. “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. Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery.”
“When our purpose-built grocery technology and trusted retailer and brand relationships are combined with DoorDash’s global consumer reach and logistics capabilities, we can create new opportunities for our retail and brand partners,” said Chris Rogers, CEO of Instacart, which partners with more than 2,200 retail banners representing nearly 100,000 stores.
Memberships, pricing and shopper commitments
DoorDash says Instacart customers could gain access to more than 50,000 additional stores, that DashPass and Instacart+ members would pay one membership fee instead of two, saving an estimated $100 million a year, and that Dashers and Instacart Shoppers would gain more earning opportunities. The companies also say they will invest in affordability and that grocery prices will not rise as a result of the deal.
Among its post-close commitments: an open platform with no grocery exclusivity, with grocers currently under exclusivity agreements with either company freed to list on other platforms at close, and preservation of Instacart Shopper features, including batch visibility, Cart Star ratings and the choice of whether to take DoorDash orders. DoorDash expects to keep Instacart’s brand, enterprise technology products and app, and the companies will operate independently until closing.
Food access and financing
The companies also leaned on their food-access credentials: Instacart was the first online grocery marketplace to accept SNAP/EBT in all 50 states, and the companies say 99 percent of U.S. households receiving SNAP have at least one store available on DoorDash or Instacart, with commitments to work toward eliminating food deserts and expanding food-as-medicine programs.
DoorDash will fund the cash portion with cash on hand and debt financing, including a bridge facility committed by JPMorgan Chase, and is targeting an investment-grade capital structure. DoorDash, which also operates Deliveroo, SevenRooms and Wolt, has facilitated more than 10 billion consumer orders since 2013; Instacart powers e-commerce, fulfillment, in-store technology and advertising for its retail partners.
A microsite has been set up pertaining to the deal.
Related: Big Y, Instacart Launch In-Store Foodservice Kiosks, Online Catering Ordering