DoorDash has agreed to acquire Instacart in a $17 billion deal that would combine two of the leading food and grocery delivery platforms in the United States. The announcement was made on Thursday, and the transaction, expected to close in late 2027 or early 2028, will see the companies continue to operate independently until then. Post-merger, DoorDash plans to maintain Instacart’s brand and app while integrating resources to expand service offerings.
The deal values Instacart at $65 per share, representing a 26% premium over its price prior to reports of the acquisition. Instacart went public in 2023 after experiencing accelerated growth during the COVID-19 pandemic but has faced increasing competition from larger rivals like DoorDash, Amazon, and Walmart. Instacart, founded in 2012, specializes primarily in grocery and convenience store deliveries, fulfilling about 338 million orders last year and servicing approximately 100,000 stores. DoorDash, founded in 2013 and originally focused on restaurant delivery, has since diversified into groceries, pet food, electronics, and more, completing over 3 billion orders worldwide last year across 40 countries. DoorDash’s third-quarter 2026 results showed nearly 1 billion completed orders, a 28% increase year over year, with revenue reaching $4.6 billion.
Under the terms of the merger, Instacart shareholders will have the option to receive cash, DoorDash stock, or a combination of both. The deal will provide customers with a single subscription account combining the perks of both platforms’ DashPass and Instacart+ memberships, potentially saving consumers up to $100 million annually on fees. The combined platform will also offer shoppers access to approximately 150,000 stores, including 50,000 additional locations from DoorDash’s network. The companies emphasized that grocers and retailers will not be required to partner exclusively with either platform, preserving choice in the marketplace.
DoorDash Chief Executive Tony Xu stated that the merger aims to provide local retailers with tools to better compete against major e-commerce giants like Amazon and Walmart. Instacart CEO Chris Rogers echoed this, highlighting the combined company’s potential to support retailers of all sizes, especially those lacking the resources to develop proprietary delivery technology. The transaction also seeks to enhance earning opportunities for the independent contractors who fulfill deliveries on both platforms.
Industry analysts have noted that the deal could face antitrust scrutiny given the significant market share controlled by the merging companies in the U.S. delivery sector. Some experts raise concerns about the potential for increased monopolistic power, while others suggest the consolidation may strengthen the companies’ ability to challenge dominant players in grocery and restaurant delivery. The acquisition also signals a continued wave of consolidation among delivery services, following previous mergers such as Uber’s acquisition of Postmates and DoorDash’s purchases of European and other delivery businesses.
The grocery delivery market has grown increasingly competitive, with Amazon expanding its same-day grocery delivery and Walmart partnering with various restaurant chains to diversify offerings. DoorDash’s purchase of Instacart represents a strategic move to increase scale and profitability in an industry where grocery orders generally offer higher average value than restaurant takeout. The deal underscores the ongoing transformation of food and grocery delivery as technology platforms seek to capture a larger share of consumer spending and meet evolving demands for convenience.