DoorDash has agreed to buy Instacart in a deal worth about $17 billion, joining a major restaurant delivery platform with a leading grocery delivery service and expanding DoorDash’s online grocery business.
The offer, announced October 29, includes cash and stock and values Instacart at $65 per share, with at least 75% of the total payment in cash. Shareholders may choose cash, DoorDash stock, or a mix, subject to limits on the stock portion. The boards of both companies approved the agreement.
The companies said they expect the deal to close near the end of 2027 or in the first half of 2028. Until then, the companies will continue to operate separately. DoorDash says it plans to keep Instacart’s brand, app, and technology products for businesses after the deal closes.
The combination would bring together DoorDash’s delivery network and Instacart’s grocery technology and relationships with retailers, including tools grocers can use on their own websites. The companies say customers could get access to more stores and delivery options. They say shoppers and Dashers could have more ways to earn money.
The proposed acquisition would give DoorDash a larger presence in grocery delivery. DoorDash already competes in that market with retailers and other delivery services.