DoorDash to acquire Instacart in $17 billion transaction
DoorDash announced a $17 billion deal to buy Instacart, aiming to broaden grocery options for customers and expand its retail reach.
DoorDash said it will purchase grocery-delivery platform Instacart for about $17 billion, creating a combined service that will cover meals, quick-need items and larger weekly grocery orders. The transaction, expected to close by late 2027 or early 2028, will increase the number of stores available to Instacart shoppers from roughly 100,000 to 150,000 and allow DoorDash to move beyond restaurant deliveries into broader retail.
"Together, we can accelerate innovation across the grocery industry and make online grocery more seamless and affordable for the millions of households we serve," said Instacart chief executive Chris Rogers.
"Over the last 14 years, Instacart has transformed online grocery by helping retailers of all sizes compete and grow, and joining forces with DoorDash allows us to do even more," Rogers added.
DoorDash co-founder and chief executive Tony Xu said the acquisition will let the company use Instacart’s expertise in grocery selection and product substitution while leveraging DoorDash’s delivery network.
"Grocery is one of the hardest things to get right online. Someone has to pick a ripe avocado, find a substitute you'd choose yourself, and get the ice cream to you before it melts," Xu explained.
"Instacart has spent years learning to do that well for grocers, while DoorDash has built a delivery network and technology that local stores rely on every day," he continued.
The deal values Instacart at $65 per share, a 26% premium over its closing price on 22 October, and will be paid at least 75% in cash. DoorDash plans to retain Instacart’s brand, app and technology, with both services operating independently until the merger is finalized.