DoorDash has agreed to acquire Instacart in a transaction valued at approximately $17 billion, combining two of the largest platforms serving local commerce, grocery delivery, and on-demand fulfillment.
Under the definitive agreement, Instacart shareholders will receive $65 per share, representing a 26% premium to Instacart’s closing price on October 22, 2026, the last trading day before media reports emerged about a potential transaction.
The aggregate consideration will consist of at least 75% cash, with Instacart shareholders able to elect cash, DoorDash stock, or a combination of both. DoorDash stock will represent no more than 25% of the total transaction consideration.
Instacart’s board unanimously approved the transaction.
The combination is designed to bring together DoorDash’s delivery network with Instacart’s grocery technology, fulfillment tools, retail media capabilities, and relationships with grocers and consumer brands.
DoorDash said Instacart customers could gain access to more than 50,000 additional stores beyond the nearly 100,000 locations currently available through Instacart.
The companies also plan to combine their membership programs. DashPass and Instacart+ members would eventually pay a single membership fee instead of maintaining two subscriptions, which DoorDash estimates could save customers approximately $100 million annually.
DoorDash also plans to maintain Instacart’s brand, app, and enterprise technology products following closing.
Instacart shareholders will be able to elect $65 in cash per share, 0.3372 DoorDash shares, or a combination of $48.75 in cash and 0.0843 DoorDash shares, subject to proration and the overall 25% stock consideration cap.
DoorDash expects to finance the cash portion using cash on hand and debt financing. JPMorgan Chase has committed a 364-day senior unsecured bridge facility to support the transaction.
The acquisition is expected to close near the end of 2027 or during the first half of 2028, subject to Instacart shareholder approval, regulatory clearances in the U.S., Canada, and Israel, and other customary closing conditions.
Shareholders representing approximately 19% of Instacart’s outstanding shares have agreed to vote in favor of the transaction.
Support: Centerview Partners is serving as lead financial advisor to DoorDash, with J.P. Morgan Securities also advising the company. Goldman Sachs is advising Instacart.
KEY QUOTES:
“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. 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.”
Tony Xu, Co-Founder And CEO Of DoorDash
“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.”
“Together, we can accelerate innovation across the grocery industry and make online grocery more seamless and affordable for the millions of households we serve.”
Chris Rogers, CEO Of Instacart
