DoorDash to Acquire Instacart in $17 Billion Deal
DoorDash announced a $17 billion acquisition of Instacart, aiming to strengthen its position in the U.S. grocery-delivery market as competition intensifies.
DoorDash said on Thursday it will purchase Instacart for about $17 billion, offering $65 per share, a premium of roughly 26 percent to the stock’s closing price on Oct. 22. The deal is intended to expand DoorDash’s footprint in the fast-growing U.S. grocery-delivery sector, where competition among app-based platforms is increasing.
"Grocery is one of the hardest things to get right online," said Tony Xu, co-founder and CEO of DoorDash, adding that Instacart has spent years learning to do that well for grocers.
The transaction is expected to close by the end of 2027 or the first half of 2028. In a regulatory filing, Instacart disclosed plans to wind down its Caper Cart smart-shopping-cart business by the second quarter of 2027, anticipating related pre-tax charges of $55 million to $80 million.
Industry analysts note that delivery firms are seeking growth by moving into grocery and retail as restaurant-delivery volumes level off. Recent activity includes Just Eat Takeaway’s $7.3 billion acquisition of Grubhub, DoorDash’s purchase of Wolt and Deliveroo in the U.K., Uber’s $15 billion deal for Delivery Hero, and Uber’s earlier acquisition of Postmates.