SAN FRANCISCO— DoorDash has agreed to acquire Instacart in a transaction valued at approximately $17 billion, marking one of the largest deals in grocery e-commerce and delivery. Under the definitive agreement, DoorDash will pay $65 per Instacart share, representing a 26% premium to Instacart’s closing stock price prior to reports of a potential transaction. The deal has been unanimously approved by Instacart’s board of directors and is expected to close in late 2027 or the first half of 2028, pending shareholder and regulatory approvals.
“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. It’s still early innings, but we know that when more people shop local, more dollars stay local.”
The companies said the combination would bring together DoorDash’s logistics and delivery network with Instacart’s grocery technology, fulfillment capabilities and retailer-focused software. Together, the companies aim to help grocers and retailers compete more effectively as consumers increasingly shop for groceries and household essentials online.
“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 Chris Rogers, CEO of Instacart. “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, offer an even better experience for customers and shoppers, and deliver compelling value for our shareholders. Together, we can accelerate innovation across the grocery industry and make online grocery more seamless and affordable for the millions of households we serve.”
DoorDash and Instacart currently serve different but complementary shopping occasions. While Instacart has built its business around grocery shopping and retailer technology, DoorDash has expanded beyond restaurant delivery into groceries, convenience, retail and other local commerce categories. The companies said the merger will create a broader platform for retailers, brands and consumers, offering expanded store selection, delivery options, advertising capabilities and AI-powered tools.
The combined company expects several benefits for shoppers, including access to a wider network of retailers and potential savings through the integration of DoorDash’s DashPass and Instacart+ membership programs. DoorDash also said the deal could create additional earning opportunities for delivery workers by providing access to a broader range of grocery and retail orders.
For grocers, the companies said the transaction could expand access to Instacart’s e-commerce, fulfillment and retail media technology while leveraging DoorDash’s delivery infrastructure. The merger is also intended to strengthen the companies’ ability to compete with larger retailers and e-commerce platforms that have invested heavily in logistics, membership programs and AI-driven shopping tools.
Following the close of the transaction, DoorDash plans to retain the Instacart brand, app and enterprise technology products. The company also pledged to maintain an open platform approach that allows grocers to work with multiple delivery providers and said Instacart shoppers will continue to have flexibility over how and when they work. Until the deal closes, DoorDash and Instacart will continue operating as separate companies.
The acquisition underscores the growing importance of scale in online grocery and local commerce as retailers and technology providers seek new ways to meet consumer demand for faster delivery, digital shopping tools and personalized experiences.
