DoorDash Moves to Consolidate Grocery Delivery with $17 Billion Instacart Acquisition
AI-generated image · US National Wire
The merger combines the two largest U.S. grocery delivery platforms in a bid to scale logistics and counter the rise of giant online retailers.
DoorDash has entered into a definitive agreement to acquire rival Instacart for approximately $17 billion, according to reports from Engadget, TechCrunch, and a company announcement. The deal values Instacart at $65.00 per share, representing a 26% premium over its October 22, 2026, closing price.
The company stated that the deal will consist of at least 75% cash, and Instacart shareholders can choose to receive cash, DoorDash stock, or a combination of the two. The deal has received unanimous approval from Instacart's board of directors and has been approved by the board of DoorDash.
This consolidation targets the high-cost logistics layer of the industry. DoorDash CEO Tony Xu noted that grocery is "one of the hardest things to get right online," citing the complexities of product selection and temperature-sensitive delivery. Instacart CEO Chris Rogers noted that combining Instacart's purpose-built technology with DoorDash's global reach would create new opportunities for partners. By merging DoorDash's delivery network with Instacart's fulfillment technology, the company aims to provide local grocers—who often operate on thin margins—with the AI tools and infrastructure necessary to compete with the warehouses and delivery fleets of the largest online retailers.
Engadget reports that this follows previous unsuccessful negotiations in 2021 due to antitrust and pricing concerns. TechCrunch notes that Bloomberg previously reported Instacart had been in talks with Uber before walking away.
Post-acquisition, DoorDash intends to maintain the Instacart brand, app, and enterprise products. The company estimates that merging DashPass and Instacart+ memberships could save consumers $100 million annually. The deal is expected to close by late 2027 or the first half of 2028, pending antitrust scrutiny.