DoorDash to acquire Instacart in $17 billion cash and stock deal

DoorDash announced on Thursday that it will purchase Instacart for approximately $17 billion. The transaction, which consists of both cash and stock, will end Instacart's status as a public company. DoorDash shareholders will pay $65 per share, a price that reflects a 25% premium over Instacart's closing value on October 22.

Instacart went public in 2023 after experiencing rapid growth during the pandemic. However, the company faced increasing pressure from larger rivals in recent years. Amazon has expanded its same-day grocery service to 2,300 locations. Walmart now offers 30-minute delivery in select areas, and Uber recently signed a partnership with Costco. These competitors have made it difficult for Instacart to maintain its market position.

Tony Xu, cofounder and CEO of DoorDash, stated that the combination will merge DoorDash's delivery network with Instacart's grocery fulfillment technology. Xu noted that grocery delivery requires specific skills, such as selecting ripe produce and ensuring ice cream remains frozen. He said, "Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery." DoorDash has previously expanded beyond food delivery by adding restaurant reservations and partnering with retailers like Home Depot and Sephora.

The merged company aims to eliminate the need for customers to pay for separate subscription services. Currently, users must pay for both DashPass and Instacart+ to access premium benefits on each platform. The companies estimate that consolidating these memberships will save customers $100 million annually in fees.

The American Economic Liberties Project has already voiced opposition to the deal. Lee Hepner, Senior Legal Counsel at the group, argued that the merger would allow the combined entity to control nearly 60% of the third-party grocery delivery market. Hepner stated that the two companies have "spent the better part of a decade bullying main street businesses and denying fair pay and benefits to their combined 9 million workers."

The deal is expected to close within the next few months. It follows a series of major acquisitions in the delivery industry. In 2025, Wonder acquired Grubhub's U.S. business for $650 million. Uber purchased Delivery Hero earlier this year for $14.8 billion and bought Postmates in 2020 for $2.65 billion.

Regulators will review the transaction to determine if it meets antitrust standards. The combined company will operate with a larger workforce and a broader network of grocery partners than either firm had individually.