DoorDash to Buy Instacart for $17 Billion in Delivery Megadeal
DoorDash agrees to buy Instacart for $17 billion, combining restaurant and grocery delivery in a board-approved deal set to close by the middle of 2028.
Summary
DoorDash agreed on October 29, 2026, to acquire Instacart for $17 billion, or $65 per share, combining its restaurant delivery strength with Instacart’s grocery reach. Both boards approved the transaction, which is expected to close in late 2027 or the first half of 2028. Until then, the businesses will remain separate and independent. DoorDash plans to retain Instacart’s brand, app and enterprise technology products.
DoorDash says Instacart’s grocery technology and retailer and brand relationships can combine with its global consumer reach, logistics and fulfillment services. Grocers could build online ordering and advertising businesses, handle more digital orders and offer lower-cost delivery. Instacart CEO Chris Rogers said the company transformed online grocery over 14 years, while DoorDash CEO Tony Xu highlighted the difficulty of selecting produce, choosing substitutions and delivering frozen goods. Instacart has a market capitalization above $13 billion, with shares up 25% year to date, as grocery delivery competition intensifies. Instacart previously held acquisition talks with Uber but walked away.
Positives
- $65 per share gives Instacart shareholders a defined acquisition value in the $17 billion transaction.
- DoorDash plans to preserve Instacart’s brand, app and enterprise technology products after the acquisition.
- Instacart technology could help grocers develop their own online ordering platforms and advertising businesses.
- DoorDash fulfillment could let grocers process more online orders while offering lower-cost delivery.
- DoorDash’s global reach and logistics could expand access to Instacart’s grocery technology and retail relationships.
Risks & concerns
- Late 2027 to first-half 2028 closing guidance leaves the companies operating separately for an extended period.
- Grocery delivery competition is intensifying despite Instacart shares rising 25% year to date.
- Selecting produce, managing substitutions and protecting frozen goods make online grocery operationally difficult, Tony Xu said.
- Instacart previously walked away from acquisition discussions with Uber before agreeing to DoorDash’s offer.