DoorDash to buy Instacart for $17 billion in US grocery deal

Instacart shareholders will receive $65.00 per share under a definitive agreement that values the grocery delivery company at about $17 billion. The deal gives DoorDash control of the largest restaurant delivery operation in the United States and the leading digital platform for grocery shopping.

The boards of directors of both companies approved the terms on October 29, 2026, and Instacart’s board approved the agreement unanimously. Early reports from premarket trading in New York pointed to Instacart shares rising near 5% and DoorDash shares rising more than 7%. Both companies keep their headquarters in San Francisco, California, and expect the formal combination to be completed between late 2027 and 2028.

The logistics of grocery delivery drove the decision. Perishable food requires strict routines, such as manual selection of fresh items and thermal insulation to stop sensitive products from thawing. Tony Xu, co-founder and CEO of DoorDash, said in a statement that Instacart built years of experience serving supermarket chains, while DoorDash built delivery infrastructure and tools that local stores use every day.

Strong order volume backs DoorDash’s purchase

DoorDash’s financial size made the purchase viable. In the third quarter of 2026, the company completed 993 million orders on its platform, a 28% increase over the same period of the previous year. Customers moved almost $34 billion in the quarter, and the company posted net revenue of $4.6 billion. The price also exceeds DoorDash’s largest earlier acquisitions, including the purchase of Finland’s Wolt for about $8 billion and the takeover of the UK’s Deliveroo.

Instacart reported 90.3 million orders in the second quarter of 2026, which generated about $10.4 billion in merchandise sales. The company’s revenue for the period was just over $1 billion.

The valuation gap between the two companies is wide. DoorDash is worth about $73 billion, while Instacart was valued at close to $14 billion before the formal announcement. In 2021, the companies had held talks at a reported valuation of $40 billion to $50 billion, but those discussions collapsed partly over regulatory concerns.

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Instacart accepts an offer after rivals gained ground

The agreement closes a period of sharp swings for Instacart. Venture capital investors valued the company at $39 billion during the demand surge caused by the pandemic, and Instacart held its initial public offering in 2023. Since the stock market debut, the company has faced aggressive expansion by rival platforms in its core area.

DoorDash itself drove the increase in competition in retail. In 2025, its app expanded full grocery delivery from almost 2,700 Kroger stores across the United States and formed partnerships with Family Dollar and dozens of regional chains. Consumer Edge, a market research company, says Instacart’s share of US delivery spending fell from 26% to 18% in five years, while DoorDash’s rose from 44% to 59%.

With the purchase, DoorDash adds a base of more than 2,200 partner retailers already registered. Grocery shopping carries much larger average tickets than restaurant orders, and its margins can be higher than those of single restaurant orders.

Single membership and no exclusivity for local grocers

The corporate structure promises direct benefits for end users. DoorDash said it will charge a single fee for unified membership in its loyalty programs after the deal closes, ending double billing for subscribers of both platforms. The company estimates annual savings of $100 million for members of DashPass and Instacart+.

DoorDash also committed that local grocery stores will not be subject to exclusivity clauses, a step meant to ease concerns from merchants who feared losing bargaining power. The Instacart brand and app will remain in place, and Instacart customers will gain access to 50,000 additional stores covered by DoorDash, the company said.

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The cash portion will be financed with cash on hand and debt. At least 75% of the consideration will be paid in cash, and Instacart shareholders may choose cash, DoorDash stock or a combination of both, with DoorDash stock capped at 25%. Shareholders holding about 19% of Instacart’s shares have already agreed to vote in favor, and DoorDash has a 364-day bridge loan commitment from JPMorgan Chase.

US antitrust review could shape the deal’s timeline

The deal needs clearance from US antitrust authorities under the Hart-Scott-Rodino Act, the federal pre-merger review law. The Department of Justice will assess the level of market concentration and the effect on fees paid by consumers and merchants. Approvals in Canada and Israel are also required before closing.

On Wednesday, October 28, 2026, New York City’s Department of Consumer and Worker Protection described the potential merger as part of a troubling trend of corporate consolidation. Representatives of independent workers and small merchants have also voiced concern about fewer alternatives in app-based work. Instacart canceled its third-quarter earnings call scheduled for November 5, 2026, and suspended its financial guidance while the deal is pending.