DoorDash to Acquire Instacart in $17 Billion Transaction
DoorDash announced a $17 billion purchase of Instacart, aiming to combine grocery and food-delivery platforms and expand services for merchants and consumers.
DoorDash said on Thursday that it will acquire Instacart for $17 billion, paying $65 per share. The deal will bring together one of the nation’s largest grocery-delivery services with a major food-delivery company.
Tony Xu, co-founder and chief executive officer of DoorDash, said the combination will allow more supermarkets to use Instacart’s platform and give stores of all sizes additional tools to enhance grocery delivery.
DoorDash added that the merger could give Instacart customers access to more than 50,000 additional stores beyond the roughly 100,000 already on its platform, offering broader selection, faster delivery and potential savings for shoppers.
Instacart, founded in 2012, provides grocery and convenience-store delivery in the United States and Canada. DoorDash, launched a year later as a restaurant-delivery service, entered the grocery-delivery market in 2020 and has partnered with major chains such as Kroger and Costco.
The acquisition is expected to strengthen DoorDash’s position in grocery delivery and increase competition with larger retailers like Amazon and Walmart. DoorDash reported a 34 % year-over-year revenue increase and a 28 % rise in total orders in its latest earnings release.
Industry analysts note that the transaction reflects ongoing consolidation in the delivery sector, where larger firms are gaining market share. Instacart’s share of U.S. delivery-platform spending has fallen to 18 % from 26 % five years ago, according to market data.
Regulators have opened an investigation into pricing practices across several delivery and retail companies, including DoorDash and Instacart. The Federal Trade Commission announced a probe to examine how prices are set on the platforms.
DoorDash, valued at about $73 billion, said the two companies will continue operating as separate entities until the merger is completed, which is projected for late 2027 or early 2028. Post-closing, DoorDash plans to retain Instacart’s brand, technology and app.