DoorDash to Acquire Instacart in $17 Billion Deal

DoorDash said on Thursday it will buy Instacart for about $17 billion, offering $65 per share – a roughly 26% premium to the price before the deal was reported. The consideration will be at least 75% cash, with shareholders able to choose cash, DoorDash stock or a mix of both.

Tony Xu, co-founder and CEO of DoorDash, said grocery delivery is "one of the hardest things to get right online" and noted that Instacart has spent years mastering the segment for retailers. Instacart founder Apoorva Mehta said the two firms had discussed a combination on and off for years before talks intensified over the summer and early September.

Instacart had also held preliminary talks with Uber, but the ride-hailing company did not pursue a deal after announcing a $14.8 billion acquisition of Delivery Hero.

Analysts noted that while restaurant delivery is maturing, growth now lies in more frequent, higher-value orders such as weekly grocery shops and convenience items. The sector has seen increased consumer demand for convenience, a trend that could be reinforced by rising gasoline prices.

The transaction is slated to close by the end of 2027 or the first half of 2028. CFRA Research highlighted regulatory approval as the primary risk, noting that the extended timeline suggests an anticipated antitrust review. New York City’s Department of Consumer and Worker Protection described the merger as part of a "troubling trend" of corporate consolidation.

DoorDash plans to retain the Instacart brand and app after the merger and will combine the companies’ membership programs, while pledging not to force grocers to use its delivery services exclusively. The deal includes a $650 million termination fee payable by Instacart to DoorDash, and a $1.25 billion fee payable by DoorDash to Instacart under certain termination scenarios.