DoorDash to Acquire Instacart in $17 Billion Stock Deal
Key Facts
DoorDash and Instacart agreed on October 29, 2026, to an all-stock acquisition valued at about $17 billion, at $65 per Instacart share, according to an announcement by DoorDash. The price represents a 26% premium to the stock’s closing price on October 22, the day before reports of possible talks. The agreement brings together two companies operating in delivery and local commerce, expanding the grocery and delivery services each can offer to retailers and customers. Instacart’s board unanimously approved the agreement, while shareholders holding about 19% of its outstanding shares agreed to vote in its favor. The deal remains subject to shareholder approval and regulatory reviews, and is not expected to close before the end of 2027 or the first half of 2028.
The agreement provides for at least 75% of the consideration to be paid in cash, with Instacart shareholders able to choose cash, DoorDash shares or a mix of the two. Shares may not exceed 25% of the total consideration, and their allocation is subject to the pro rata limit set out in the agreement. DoorDash said it would fund the cash portion from available liquidity and proceeds from debt financing, and that the deal is not contingent on obtaining financing. The company said it aims to maintain investment-grade credit ratings. The voting commitment from shareholders holding about 19% of Instacart’s shares gives the agreement initial support, but does not replace a vote by the remaining shareholders or the required regulatory approvals.
DoorDash says Instacart customers could gain access to more than 50,000 additional stores after the deal closes, on top of about 100,000 stores currently available on the Instacart platform. The companies also expect to combine DashPass and Instacart+ memberships into a single subscription, which could lower fees for some members. DoorDash estimated annual savings from membership fees alone at about $100 million. At the group level, the company expects a path over several years to annual savings of $500 million or more, net of investments. But it expects to invest more than the total savings in the first year after closing, meaning net savings will depend on executing the integration plan over a longer period.
DoorDash and Instacart will remain separate and independent companies until the deal closes, according to DoorDash’s announcement. After closing, the company expects to retain the Instacart brand, app and enterprise technology products. The announced offer is based on combining DoorDash’s delivery network with Instacart’s grocery technology and fulfillment capabilities, while expanding the tools the companies can offer retailers. Among the paths outlined by DoorDash are giving Instacart customers access to a broader store network and combining subscription benefits. These benefits remain contingent on the deal closing, while the companies’ operating status will remain unchanged until then.
The announcement coincided with third-quarter 2026 results, which showed continued growth in Instacart’s activity and revenue. Gross transaction value on the platform reached $10.528 billion, up 15% year over year, while revenue rose to $1.095 billion, an increase of 17%. Advertising and other revenue totaled $331 million, up 23% from the same quarter a year earlier. The company’s chief executive said, "The third quarter was our best quarter as a public company," linking that performance to growth in transaction value and advertising, stronger demand, customer engagement and profitability. Net income was $147 million, compared with $144 million a year earlier, while adjusted earnings before interest, taxes, depreciation and amortization rose to $342 million from $278 million.
DoorDash also reported growth in the third quarter, with orders rising 28% year over year to 993 million and revenue increasing 34% to $4.6 billion. Net income attributable to its common shareholders was $466 million, compared with $244 million in the third quarter of 2025. The figures reflect the difference in scale between the companies: DoorDash handled more than 3 billion orders in the previous year through a network of 9 million independent delivery workers, according to the Associated Press. Instacart, by contrast, recorded 338.8 million orders in 2025, up 15% from 2024, and had about 600,000 shoppers and more than 26 million customers who placed at least one order that year. The comparison shows two networks with different scales and operating models, as Instacart focuses on groceries while DoorDash’s platform spans a broader range of orders.
The deal comes as Instacart’s share of U.S. delivery-platform spending has declined in recent years, according to Consumer Edge data cited by the Associated Press. Its share fell from 26% five years ago to 18% at the time of the report, while DoorDash’s share rose from 44% to 59%. The shift points to DoorDash’s expansion in the delivery market alongside a decline in Instacart’s relative share, despite growth in the latter’s revenue and orders. Reuters reported on October 23 that Instacart was considering a potential sale and holding preliminary talks with buyers, including DoorDash and Uber. Instacart shares closed up about 9% that day after the reports emerged.
In trading, DoorDash shares rose 6% in early trading on October 29, while Instacart shares were steady, according to the Associated Press. DoorDash shares had closed at $169.49 on October 28. In connection with the deal, Instacart suspended its financial guidance and withdrew its long-term outlook during the period before closing. The company also canceled its results call scheduled for November 5, after announcing its third-quarter results on October 29. DoorDash expects the deal to close at the end of 2027 or in the first half of 2028, subject to approval by Instacart shareholders, completion of the U.S. antitrust review and other regulatory approvals, including in Canada and Israel.