TL;DR
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 stockholders able to elect cash, DoorDash shares or a mix, subject to limits and proration. The companies say they will combine delivery reach and grocery technology, but the transaction has not closed.
DoorDash has agreed to acquire Instacart in a transaction valuing the grocery-delivery company at about $17 billion, the companies announced. The proposed deal would bring Instacart’s grocery and fulfillment technology together with DoorDash’s delivery network, but the businesses will remain separate and independent until the transaction closes.
The agreement sets consideration at $65 per Instacart share, which DoorDash said is a 26% premium to Instacart’s closing share price on October 22, 2026. The total consideration will be at least 75% cash. Instacart stockholders may elect to receive cash, DoorDash stock or a combination, with proration applying so DoorDash shares make up no more than 25% of the aggregate consideration. Instacart’s board unanimously approved the agreement.
DoorDash said the combination would pair its delivery network with Instacart’s grocery and fulfillment technology. The companies also cited their advertising and artificial-intelligence tools, and said retailers could use the technology through both their apps and their own websites. DoorDash said Instacart’s brand, enterprise technology products and app are expected to remain in place after closing.
DoorDash projects that Instacart customers could gain access to more than 50,000 additional stores, beyond the nearly 100,000 already on Instacart’s platform. The company also estimates DashPass and Instacart+ members would save about $100 million a year on membership fees if they paid one fee instead of two. Those are DoorDash’s stated expectations, not outcomes established by a completed transaction.
How the Deal Could Reshape Grocery Delivery
The proposed acquisition would unite two large delivery platforms with different strengths: DoorDash’s broad local delivery network and Instacart’s grocery-focused technology and retailer relationships. If completed, the combined company could offer grocers a way to handle online ordering, fulfillment and delivery without building every capability themselves. That could matter to smaller and regional stores competing with large retailers that invest in their own logistics and digital services.
For customers and workers, the companies are promising more store options, membership savings and earning opportunities. DoorDash also said local grocers would not face grocery exclusivity requirements and that Instacart Shoppers could keep choosing which batches to accept, or whether to take DoorDash orders. The practical effects will depend on how those commitments are implemented after closing and whether the projected benefits materialize.
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DoorDash and Instacart’s Different Roles
DoorDash says customers commonly use its service for restaurant meals and other neighborhood deliveries, while Instacart has focused on grocery shopping and online services for retailers. Instacart’s platform supports ordering from stores and related fulfillment and advertising products; DoorDash brings a delivery network that serves local businesses across categories.
The companies framed the deal as a way to help independent and regional retailers compete as online grocery shopping grows. Their announcement argues that local businesses often cannot build delivery fleets, shopping technology, advertising systems and other digital tools on their own. That rationale comes from the companies; the announcement does not provide independent projections of the deal’s effect on competition, pricing or local retailers.
„Grocery is one of the hardest things to get right online.“
— Tony Xu, DoorDash co-founder and chief executive
Closing Conditions and Integration Details
The announcement does not specify a closing date or provide the full list of conditions that must be met before the acquisition can close. Until then, DoorDash and Instacart will operate independently, and the companies have not announced changes to their services that take effect immediately.
It is also not yet clear how the companies will combine their operations, how the stockholder elections and proration will work in practice, or what the acquisition could mean for prices, service availability and competition. DoorDash’s estimates for store access and membership savings are projections; the announcement does not establish that every customer will receive those benefits.
The next steps are for the companies to satisfy the transaction’s closing conditions and complete the acquisition process. The source announcement does not provide a target closing date or detail the remaining approvals, so the timeline is not yet clear. Instacart stockholders will be able to elect cash, DoorDash stock or a combination, subject to the agreement’s consideration limits and proration.
Until closing, the companies say they will continue operating as separate businesses. Further information on timing, the closing process and how promised customer, retailer and worker arrangements will be carried out would clarify how the proposed combination will work.
Key Questions
How much is DoorDash paying for Instacart?
The agreement values Instacart at $65 per share, or about $17 billion in equity value. DoorDash said the per-share price is a 26% premium to Instacart’s October 22, 2026 closing price.
Will the purchase be all cash?
No. The aggregate consideration will be at least 75% cash. Stockholders may elect cash, DoorDash shares or a combination, with proration and a cap limiting DoorDash stock to 25% of total consideration.
When will the acquisition close?
The announcement does not give a closing date. The deal remains pending, and DoorDash and Instacart say they will operate independently until it closes.
What changes are DoorDash and Instacart promising?
DoorDash says customers could gain access to more stores and that DashPass and Instacart+ members could pay one membership fee instead of two. It also says local grocers will not be required to use only its delivery platform and Instacart Shoppers will retain flexibility over which orders they accept. These are announced commitments or projections, not evidence that the transaction has closed or the projected savings have been realized.
Source: about.doordash.com
