From Doordash · DoorDash · · 3m
DoorDash Acquires Instacart for $17 Billion
DoorDash buys Instacart to boost local stores' online sales and delivery options.
In brief
DoorDash buys Instacart to boost local stores' online sales and delivery options. DoorDash acquires Instacart for $17 billion to help local businesses reach more customers through combined delivery and grocery tech. Originally reported by Doordash.
Acquisition Deal
DoorDash will acquire Instacart for $65.00 per share, representing a 26% premium to Instacart's closing price on October 22, 2026.
Combined Company Benefits
Together, DoorDash and Instacart will help stores of every size reach more customers with innovative technology.
Consumer Benefits
Consumers gain more choice and access to affordable delivery and savings.
Dashers and Shoppers
Dashers and Shoppers will have more earnings opportunities and more choice over when and how they earn.
Transaction Details
DoorDash will pay $65.00 per Instacart share, with at least 75% cash, and Instacart stockholders can elect cash, DoorDash stock, or a combination.
Mission Alignment
DoorDash and Instacart share a mission to help local businesses succeed through delivery and grocery technology.
Technology Integration
The combined company will offer grocers and retailers DoorDash's delivery network and Instacart's grocery technology.
Consumer Experience
Customers pick a store in their community, and the store makes the sale, with faster delivery options and savings.
Market Context
Most grocery shopping happens in stores, but more people are buying groceries online with fast, affordable delivery expectations.
Competitive Landscape
Big online retailers and grocers are racing ahead with their own delivery fleets, warehouses, and AI shopping assistants.
Local Business Challenge
Grocers running on thin margins cannot build all that alone, and AI risks tilting the playing field away from local commerce.
Tony Xu's View
Tony Xu, co-founder and CEO of DoorDash, said grocery is one of the hardest things to get right online.
Chris Rogers' View
Chris Rogers, CEO of Instacart, said Instacart has transformed online grocery for retailers of all sizes.
Benefits for Consumers
Instacart customers could shop at more than 50,000 additional stores, on top of nearly 100,000 stores on Instacart.
Membership Savings
DashPass and Instacart+ members would pay one membership fee instead of two, saving an estimated $100 million per year.
Earning Opportunities
More orders for local businesses create more earning opportunities for Dashers and Shoppers.
Post-Close Commitments
Local grocers can work with any delivery platform, and Instacart Shoppers keep features they love.
Transaction Timeline
The transaction is expected to close in the end of 2027 or the first half of 2028.
Closing
DoorDash and Instacart will continue to operate as separate companies until the transaction closes.
The short version
DoorDash acquires Instacart for $17 billion to help local businesses reach more customers through combined delivery and grocery tech.
