DoorDash to Acquire Instacart in $17 Billion Food Delivery Merger

San Francisco-based delivery giant DoorDash announced on Thursday, October 29, that it has agreed to acquire grocery delivery rival Instacart in a cash-and-stock deal valued at approximately $17 billion. The transaction aims to unite DoorDash's extensive restaurant delivery logistics with Instacart's grocery fulfillment technology, positioning the combined entity to dominate both ready-to-eat takeout and household shopping across the United States.

Under the terms of the agreement, DoorDash will purchase Maplebear Inc., the parent entity of Instacart, at $65 per share. The purchase price reflects a 26 percent premium above Instacart's closing stock price on October 22, the final trading day before public reports of a potential transaction surfaced. DoorDash plans to finance at least 75 percent of the acquisition in cash, with the remainder potentially funded through DoorDash stock. Instacart's board of directors voted unanimously to approve the acquisition, and shareholders controlling roughly 19 percent of the company's outstanding stock have committed to vote in favor.

Company executives emphasized that merging their complementary operations will enhance services for merchants and consumers alike. "Grocery is one of the hardest things to get right online," DoorDash co-founder and chief executive officer Tony Xu said in a statement, noting the operational difficulty of picking ripe produce and ensuring frozen items remain intact. Xu added that Instacart spent years mastering those techniques while DoorDash established a widespread delivery network. Instacart chief executive officer Chris Rogers also praised the move, saying that "joining forces with DoorDash allows us to do even more" to make grocery orders seamless and affordable.

If finalized, the transaction will expand retail access for consumers on both platforms. Instacart customers are expected to gain access to more than 50,000 additional stores, broadening its reach from roughly 100,000 current storefronts to 150,000. The companies also plan to combine their subscription services, allowing users to pay a single membership fee for both DashPass and Instacart+ rather than two separate charges. The businesses project that this unified membership could save consumers approximately $100 million annually, while providing delivery workers with broader earning opportunities across both peak meal hours and daytime grocery orders.

Both platforms plan to keep operating independently under their existing names and mobile applications until the deal is completed, with Instacart maintaining its digital storefront technology for retail grocers. However, the transaction faces significant regulatory hurdles, including antitrust reviews within the United States as well as required government clearances in Canada and Israel. Sources also present conflicting estimates regarding the timeline: while company comments indicated that finalizing the acquisition could take up to a year, other reporting and financial disclosures suggest that closing is not expected until late 2027 or the first half of 2028.

The agreement represents a major wave of consolidation across the delivery industry as companies adapt to slowing growth in the post-pandemic era. Instacart experienced a surge in demand during the peak of the pandemic and completed its public market debut in 2023, but it has struggled to maintain momentum while facing fierce competition from retail giants such as Amazon, Walmart, and Uber. DoorDash, which accounts for roughly two-thirds of U.S. restaurant delivery volume, has increasingly expanded into retail, recently launching nationwide same-day delivery partnerships with Costco and previously buying the overseas delivery firm Deliveroo.

The planned merger also follows mounting scrutiny over delivery app pricing, operational fees, and worker compensation. DoorDash recently faced regulatory enforcement from the New York City Department of Consumer and Worker Protection regarding driver pay, resulting in a $131.5 million settlement in September. Addressing the driver underpayment, DoorDash admitted in a statement that "some Dashers were underpaid or paid late," conceding that "while these mistakes weren’t intentional, that doesn’t make them OK."