DoorDash to Acquire Instacart in $17 Billion Deal With 26% Premium
Key Facts
DoorDash and Instacart announced a definitive agreement on October 29, 2026, under which DoorDash will acquire Instacart for $65 per share, valuing its equity at about $17 billion, according to a DoorDash statement. The price is 26% above Instacart’s October 22 close, the last session before media reports of a possible deal. The agreement combines DoorDash’s logistics network with Instacart’s grocery-focused platform, expanding both companies’ reach in delivery. DoorDash said combining DashPass and Instacart+ memberships into a single fee could save consumers about $100 million a year in membership fees alone. The deal remains subject to shareholder and regulatory approvals before the companies move to integration.
The consideration terms give each Instacart shareholder cash, stock and mixed options. Shareholders can choose $65 in cash per share, 0.3372 DoorDash shares, or $48.75 in cash plus 0.0843 shares. The stock consideration is capped at 25% of the total consideration, with pro rata allocation if elections exceed that limit. DoorDash said the cash portion will be funded from available liquidity and debt proceeds, backed by an initial 364-day unsecured bridge loan facility from JPMorgan. It confirmed that closing is not conditional on obtaining financing, while targeting a capital structure that preserves its investment-grade rating.
Order figures show a wide gap in the scale of the two platforms, with DoorDash’s business clearly larger than Instacart’s. The Associated Press reported that DoorDash operates in 40 countries and completed more than 3 billion orders last year through a network of 9 million independent delivery workers. Over the same period, Instacart completed 338 million orders. DoorDash began grocery delivery in 2020 and now lists the full inventory of 2,700 Kroger stores in the United States, according to the news agency. The two companies also offer complementary models for serving household needs; former Instacart founder Apoorva Mehta said grocery and restaurant delivery together address two sides of the 21 meals customers organize each week.
Shares of U.S. delivery platforms’ spending shifted over five years, according to Consumer Edge data cited by the Associated Press. Instacart’s share fell from 26% to 18%, while DoorDash’s rose from 44% to 59%. The figures reflect DoorDash’s gains in the delivery market as the deal brings together its logistics reach with Instacart’s technology and grocery-store relationships. But combining the platforms could raise questions about competition and access to technology used by many stores. Antitrust adviser Ethan Litwin said DoorDash could potentially withhold the technology from rivals or gain an advantage over them in targeting and logistics, or monitor their prices and discounts in real time.
The deal comes as DoorDash reported growth in orders and revenue in the third quarter of 2026. Orders totaled 993 million, up 28% year over year, while gross order value rose to $33.9 billion, up 36%, according to the company’s results. Revenue increased 34% to $4.6 billion, and net income attributable to common shareholders rose 91% to $466 million. The results provide a snapshot of DoorDash’s performance before the deal review begins, but do not estimate the gains from integration. The Associated Press reported that DoorDash shares rose 5% in Thursday afternoon trading on October 29, while Instacart shares fell 1.6%; DASH closed at 179, according to EL7 data, which did not specify the currency in its data record.
The deal will require approval from Instacart shareholders and regulators, including in the United States, Canada and Israel. DoorDash said shareholders holding about 19% of Instacart’s outstanding shares had agreed to vote in favor of the agreement. The companies expect to complete it at the end of 2027 or during the first half of 2028. The Associated Press said Instacart’s name and app will remain, and the companies will operate independently until closing. Reuters noted that the overlap between the businesses, particularly in grocery delivery, could draw scrutiny from the Federal Trade Commission amid concerns over the cost of living. On Wednesday, the commission launched a study into companies, including DoorDash and Instacart, using personal data to set prices and driver pay. Separately, Instacart canceled its earnings call scheduled for November 5, 2026, suspended its financial guidance and withdrew its long-term guidance while the agreement is pending.