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DoorDash and Instacart announced a definitive acquisition agreement valuing Instacart’s equity at about $17 billion, or $65 per share. The consideration will be at least 75% cash, with stockholders able to elect cash, DoorDash shares or a mix, subject to limits. The companies say the deal will expand consumer choice and earning opportunities, but it has not closed.
DoorDash has agreed to acquire Instacart in a transaction valuing Instacart’s equity at about $17 billion, the companies announced. DoorDash will pay $65 for each Instacart share, and the proposed combination would bring Instacart’s grocery technology and retailer relationships together with DoorDash’s delivery network and consumer platform.
The agreement sets consideration at $65 per Instacart share, which DoorDash says is a 26% premium to Instacart’s closing price on October 22, 2026. The aggregate consideration will be at least 75% cash. Instacart stockholders may elect cash, DoorDash stock or a combination, but elections are subject to proration so that DoorDash shares make up no more than 25% of the total consideration. Instacart’s board unanimously approved the agreement.
DoorDash says the combined business would offer retailers its delivery network alongside Instacart’s grocery and fulfillment technology. Those services could operate through the companies’ apps and retailers’ own websites, alongside advertising and AI tools developed by the two businesses. DoorDash also says Instacart customers could gain access to more than 50,000 additional stores, on top of nearly 100,000 stores already on Instacart’s platform.
The announcement includes planned customer and worker benefits, but they are company projections and commitments, not outcomes already delivered. DoorDash estimates DashPass and Instacart+ members could save about $100 million a year on membership fees if they pay one fee instead of two. It also says Dashers and Instacart Shoppers could have more opportunities to accept orders. After closing, DoorDash expects to retain Instacart’s brand, enterprise technology products and app; until then, the companies say they will operate separately and independently.
A Larger Retail Delivery Network
The deal would combine two major services that address different parts of online shopping: Instacart’s grocery-specific platform and retailer technology, and DoorDash’s delivery reach across restaurants, grocery and local commerce. If completed, that combination could give participating retailers a broader way to take online orders without building all the technology and delivery capacity themselves.
For customers, the proposed changes could mean more stores on Instacart and a shared membership benefit. For retailers and brands, the companies say the deal could expand online sales, advertising and fulfillment options. These are potential effects described by the companies; the announcement does not establish how pricing, service availability or retailer participation would change in practice.
The deal also carries consequences for workers who fulfill and deliver orders. DoorDash says workers would have more choice in the types of orders they take and when they work. It has committed to letting Instacart Shoppers keep the features they value, including information used to decide whether to accept batches, and to choose whether to take DoorDash orders or remain on Instacart alone.
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Two Platforms Serving Local Retail
DoorDash describes its service as a way to order restaurant meals and other local goods, while Instacart has focused on grocery shopping and technology for retailers. The companies’ stated rationale is that grocers can use Instacart tools to manage online stores and retail media, while DoorDash can provide delivery and fulfillment capacity. Together, they say, the services could help local retailers compete with larger online businesses.
The companies also made commitments intended to address how the combination could affect participating businesses and shoppers. DoorDash says local grocers will remain free to work with any delivery platform, with no grocery exclusivity. It says Instacart will retain its brand and app after the transaction closes. These commitments and plans are part of the announcement; the supplied material does not provide a closing timetable or detail the full conditions attached to them.
“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.”
— Tony Xu, DoorDash co-founder and CEO
Approval and Integration Details Remain
The announcement does not specify a projected closing date, the full set of closing conditions or the regulatory review process. It also does not set out how the companies would integrate their operations, apps, workforce systems or retailer relationships beyond the stated plan to retain Instacart’s brand, enterprise products and app.
The consumer savings, store expansion and added earning opportunities are estimates or expected benefits from DoorDash, not guaranteed results. The companies have not provided detail in the supplied material on how membership terms would work, which stores would be added, or how shoppers’ order choices and earnings might change. The extent to which retailers and workers use the combined services will depend on decisions and implementation after closing.
Closing Conditions and Integration
The companies must complete the transaction’s remaining closing steps before DoorDash takes ownership of Instacart. The supplied announcement does not identify a target date or list all required approvals, so those details remain pending. Until closing, DoorDash and Instacart say they will operate independently.
If the deal closes, DoorDash expects to keep Instacart’s brand, app and enterprise technology products and to put its stated commitments into effect, including allowing grocers to work with other delivery platforms and preserving Instacart Shoppers’ flexibility. Further company updates are needed to clarify timing, membership arrangements and how the combined services will be rolled out.
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 says the share price is a 26% premium to Instacart’s October 22, 2026 closing price.
How will Instacart shareholders be paid?
At least 75% of the total consideration will be cash. Shareholders can elect cash, DoorDash stock or a combination, subject to proration that caps DoorDash stock at 25% of the aggregate consideration.
Has the acquisition closed?
No. The companies announced a definitive agreement, but the supplied announcement does not give a closing date. They say they will continue to operate separately until the transaction closes.
What could change for customers and shoppers?
DoorDash says Instacart customers could gain access to more than 50,000 additional stores and that eligible members could pay one fee for DashPass and Instacart+. It also says Dashers and Instacart Shoppers could have more order choices. These are expected benefits, not confirmed changes already in effect.
Will Instacart keep its app and brand?
DoorDash expects to keep Instacart’s brand, app and enterprise technology products after closing. Until then, both companies say they will remain independent.
Source: about.doordash.com
