DoorDash agrees to acquire Instacart in $17 billion transaction
DoorDash has agreed to acquire grocery-delivery rival Instacart for $17 billion, in a transaction that values Instacart at $65 per share. The boards of both companies have approved the deal, which would combine DoorDash’s restaurant takeout network with Instacart’s grocery-delivery operations and retailer technology.
The companies expect the transaction to close toward the end of 2027 or in the first half of 2028. Until then, DoorDash and Instacart will continue to operate as separate, independent companies.
Instacart brand and products set to remain
DoorDash said it intends to keep the Instacart brand, its consumer app and its enterprise technology products. Instacart CEO Chris Rogers said the combination would bring the company’s grocery technology and retailer and brand relationships together with DoorDash’s consumer reach and logistics capabilities.
For DoorDash, the agreement follows an expansion beyond restaurant delivery that includes DoorDash expands through Wonder and Campus Dining alongside its investments in adjacent local-commerce services. The proposed acquisition adds a major grocery platform whose products support retailers’ online ordering and advertising operations.
Grocery fulfillment is the central operational challenge
DoorDash CEO Tony Xu described grocery as one of the hardest categories to execute online, citing tasks such as selecting ripe produce, choosing suitable substitutions and delivering frozen goods before they melt. Instacart has spent years building grocery-specific capabilities for retailers, while DoorDash has developed a delivery network and technology used by local stores.
DoorDash said the combination could give grocers more ways to build their own online ordering platforms and advertising businesses using Instacart technology. It also said grocers could use DoorDash fulfillment services to process more online orders and offer lower-cost delivery.
What the transaction means for retailers
The agreement brings two large on-demand delivery businesses under one corporate owner but does not immediately alter their independent operations. DoorDash said that combining their capabilities could create opportunities for retail and brand partners, customers and shoppers.
Businesses that use delivery platforms should assess which ordering, advertising and fulfillment products each company offers as the transaction progresses. The closing timeline leaves retailers time to review existing platform arrangements and identify where the proposed combined capabilities may fit their online commerce plans.