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DoorDash and Instacart announced a definitive agreement for DoorDash to acquire Instacart at $65 per share, an equity value of about $17 billion. The deal is at least 75% cash, remains subject to closing conditions, and the companies will operate independently until it closes.
DoorDash has agreed to acquire Instacart in a transaction valuing Instacart at about $17 billion, combining DoorDash’s delivery network with Instacart’s grocery technology and retailer relationships. The companies said the consideration is at least 75% cash, with Instacart shareholders able to elect cash, DoorDash shares or a mix, subject to limits on the stock portion.
The agreement sets a value of $65 for each Instacart share, which DoorDash said represents a 26% premium to Instacart’s closing share price on October 22, 2026. Instacart’s board unanimously approved the agreement. The companies did not provide a closing date in the supplied announcement.
Shareholders can choose cash, DoorDash stock or a combination, but the overall transaction consideration will be at least 75% cash. DoorDash stock cannot exceed 25% of the aggregate consideration, and elections are subject to proration. The announcement describes the deal’s equity value as approximately $17 billion.
DoorDash says it expects the combined business to connect its delivery network with Instacart’s grocery and fulfillment technology, including tools used on retailer websites and in the Instacart app. After closing, DoorDash expects to retain Instacart’s brand, enterprise technology products and app. Until then, the companies say they will continue to operate separately and independently.
A Broader Network for Grocery Orders
The proposed acquisition would bring together two major parts of online local commerce: DoorDash’s delivery operations and Instacart’s grocery-focused platform. For shoppers, the companies say the combination could add store options and delivery choices. For retailers, it could connect more businesses to ordering, fulfillment and advertising tools without requiring each store to build a full online operation itself.
DoorDash said Instacart customers could gain access to more than 50,000 additional stores, on top of nearly 100,000 already on Instacart’s platform. It also estimates that DashPass and Instacart+ members could save about $100 million a year in membership fees by paying one fee rather than two. These are company projections, not outcomes already achieved, and depend on the deal closing and the proposed membership arrangement being implemented.
The companies also say a larger volume of local-business orders could create more earning opportunities for Dashers and Instacart Shoppers. DoorDash has said shoppers would retain flexibility over how much they work and which batches they accept. The practical effects for workers, customers and retailers will depend on how the combined service is run after closing.
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Two Platforms With Different Strengths
DoorDash describes its core role as connecting consumers and local businesses through delivery, while Instacart has spent 14 years building grocery ordering and fulfillment services for retailers. The companies say grocery delivery requires capabilities beyond dispatching a courier, including selecting produce, handling substitutions and delivering temperature-sensitive goods.
Instacart’s tools also support retailers’ own websites and advertising businesses, while DoorDash says its network can help stores fulfill orders. In announcing the agreement, the companies framed the combination as a way for smaller grocers to access services that large retailers may build themselves. That rationale is the companies’ stated case for the deal; the announcement does not establish how much the combined business would change competition or local-store sales.
“Grocery is one of the hardest things to get right online.”
— Tony Xu, DoorDash co-founder and CEO
Approvals and Integration Still Pending
The announcement does not specify a closing timetable or detail all approvals and other conditions required before the transaction can be completed. It also does not describe the expected review process or say whether regulators have raised concerns. Until the deal closes, both companies say they will remain separate and independent.
Several stated benefits remain forecasts. The expected store additions, membership-fee savings and new earning opportunities have not yet been delivered, and the announcement does not provide a detailed implementation schedule. It is also not yet clear how the combined company would coordinate its apps, pricing, memberships and fulfillment services, or what effects the transaction could have on competition and retailer choices.
Closing Terms and Customer Changes
The next steps are completion of the transaction’s required closing conditions and the shareholder election process for cash, stock or a combination of both, subject to proration and the 25% cap on DoorDash stock. The supplied announcement gives no dates for those steps or for closing.
Until closing, DoorDash and Instacart will operate independently. If the acquisition is completed, DoorDash says it expects to retain Instacart’s brand, app and enterprise products, and has made commitments that include keeping grocery open to other delivery platforms and preserving Instacart Shoppers’ ability to choose which work they accept. Further details on timing and how those commitments will work in practice have not been provided.
Key Questions
How much is DoorDash paying for Instacart?
The agreement values Instacart at $65 per share and about $17 billion in equity value. DoorDash says the offer is a 26% premium to Instacart’s closing price on October 22, 2026.
How will Instacart shareholders be paid?
Shareholders may elect cash, DoorDash stock or a combination. At least 75% of the total consideration will be cash, DoorDash stock is capped at 25%, and elections are subject to proration.
When will the acquisition close?
The companies have not provided a closing date in the supplied announcement. They say they will operate as separate companies until closing.
Will Instacart keep its name and app?
DoorDash says that after closing it expects to keep Instacart’s brand, app and enterprise technology products. The announcement does not give a schedule for any changes to services or memberships.
What could change for customers and shoppers?
DoorDash says customers could gain access to more stores and that DashPass and Instacart+ members could pay one membership fee. It also says Instacart Shoppers would retain flexibility over which batches to accept. These are proposed benefits, and their implementation depends on the deal closing.
Source: about.doordash.com
