DoorDash to buy Instacart for $17 billion, with at least 75% of consideration in cash
Key Facts
DoorDash agreed to buy Instacart’s parent company for $65 per share, valuing its equity at about $17 billion, the companies said on October 29, 2026. The price represents a 26% premium to Instacart’s October 22 closing price, the last session before media reports of a possible deal. At least 75% of the consideration will be in cash, with shareholders able to choose cash, DoorDash shares or a mix, subject to proration and a maximum of 25% of the consideration being paid in shares. Instacart’s board approved the agreement unanimously, while shareholders owning about 19% of outstanding shares pledged to vote in favor. The deal combines DoorDash’s delivery network with Instacart’s grocery, fulfillment, merchant tools, advertising and artificial intelligence technologies.
DoorDash says Instacart customers could gain access to more than 50,000 additional stores after the deal closes, on top of about 100,000 currently available on the platform. The companies also estimate that DashPass and Instacart+ members will save $100 million annually in membership fees by paying one membership fee instead of two. DoorDash Chief Executive Tony Xu said Instacart had spent years building expertise with grocery stores, while DoorDash had built a delivery network and technology that local merchants rely on every day. DoorDash added that it expects to retain the Instacart brand, its business-facing technology products and its app after closing. Grocery stores will remain free to choose which delivery platform to work with, and Instacart shoppers will be able to choose whether to accept DoorDash orders.
The deal reflects a shift in the share of U.S. delivery-platform spending over five years, according to data cited by the Associated Press. Instacart’s share fell from 26% to 18%, while DoorDash’s rose from 44% to 59% over the same period. DoorDash operates in 40 countries and completed more than 3 billion orders last year with a network of 9 million independent delivery workers, the agency reported. In groceries, DoorDash began its partnership with Kroger in 2022, later expanding it to include the full inventory of the U.S. chain’s 2,700 stores. The deal gives DoorDash a larger foothold in groceries and fulfillment technology, while Instacart adds the company’s delivery network and international reach.
The deal comes as Instacart reported growth in the third quarter of 2026, with gross transaction value of $10.528 billion, up 15% year over year, and revenue of $1.095 billion, up 17%. The company recorded net income of $147 million, while adjusted earnings before interest, taxes, depreciation and amortization rose to $342 million, up 23% year over year. Instacart said the quarter was its best since going public. DoorDash, meanwhile, said gross transaction value in its U.S. grocery and retail categories grew strongly year over year in the second quarter, alongside a significant improvement in unit economics. The results provide the deal’s operating context, bringing together a company expanding in groceries and a platform specializing in the sector.
DoorDash reported in its second-quarter 2026 results that it completed 970 million orders, up 27% year over year. Marketplace gross transaction value rose to $33.1 billion, while revenue increased to $4.5 billion, each up 36% from a year earlier. The company expects to fund the cash portion of the consideration with available cash and debt financing, backed by commitments from JPMorgan Chase to provide a 364-day senior unsecured bridge loan facility. The agreement does not include a financing out. The companies said they are targeting a closing at the end of 2027 or during the first half of 2028, following Instacart shareholder approval, expiration of the U.S. antitrust waiting period and completion of regulatory approvals, including in Canada and Israel, as well as customary closing conditions.
In a development affecting the financial calendar, Instacart canceled its earnings conference scheduled for November 5, 2026, and suspended its financial guidance while it awaits completion of the deal. DoorDash is scheduled to report third-quarter results on November 4, 2026, according to its investor relations page. Before the agreement was announced, DoorDash shares closed at $168.44 on October 26, $170.56 on October 27 and $169.49 on October 28. These prices reflect trading sessions before the October 29 announcement and do not show the market’s response to the deal. The acquisition process remains subject to shareholder approval and antitrust and regulatory reviews ahead of the targeted closing date.