DoorDash Agrees to Buy Instacart for $17 Billion

DoorDash said on Thursday, October 29, that it had agreed to buy Instacart in a deal that values the grocery delivery company at about $17 billion, a move that would combine two of the biggest names in app-based local commerce and deepen DoorDash’s reach in online grocery.

Under the definitive agreement, DoorDash will pay $65.00 for each Instacart share, valuing Maplebear Inc., which does business as Instacart, at an equity value of about $17 billion. DoorDash said the price represents a 26% premium to Instacart’s closing share price on October 22, the last trading day before media reports of a possible deal. Instacart’s board unanimously approved the agreement, according to the companies.

The transaction is structured so that at least 75% of the total consideration will be paid in cash. Instacart shareholders will be able to choose cash, DoorDash stock or a combination of both, subject to proration rules that cap DoorDash stock at no more than 25% of the total consideration. DoorDash said Instacart shareholders can elect $65.00 in cash for each share, 0.3372 shares of DoorDash common stock, or a mix of $48.75 in cash and 0.0843 shares of DoorDash stock for each share, with final allocations subject to the stock cap.

The companies framed the deal as a way to give grocers and other local retailers a broader set of digital tools at a time when online ordering, delivery speed and retail media have become more important. DoorDash said the combined business would pair its delivery network with Instacart’s grocery and fulfillment technology, both on the companies’ own apps and on retailers’ websites. The companies also said they would combine advertising tools and artificial intelligence products built for stores and brands.

DoorDash and Instacart argued that the tie-up would help smaller and mid-sized retailers compete with larger chains and e-commerce groups that can afford to build their own delivery fleets, warehouses, subscription programs and shopping technology. In the companies’ view, most grocery shopping still happens in stores, but more households are shifting part of that spending online and expect quick, low-cost delivery and easy ordering.

DoorDash said consumers could gain access to a wider range of stores, more savings opportunities and faster delivery options. It said Instacart customers could shop at more than 50,000 additional stores, on top of nearly 100,000 stores already on the Instacart platform. The company also said DashPass and Instacart+ members would eventually be able to pay one membership fee instead of two, which it estimated would save customers about $100 million a year in membership fees alone.

The companies also said the merger could create more earning opportunities for workers who fulfill and deliver orders. DoorDash said grocery orders could give workers more flexibility in slower restaurant periods, while restaurant demand could provide work during peak meal times. At the same time, the company tried to address concerns from grocery partners and contract shoppers by making several public commitments tied to the deal.

DoorDash said local grocers would remain free to work with other delivery platforms and would not face grocery exclusivity requirements after the deal closes. It also said Instacart shoppers would keep the features they rely on, including the ability to choose how much they work and the information they use to decide which batches to accept. The company said those workers would be able to decide whether to take DoorDash orders or continue using only Instacart.

DoorDash said it expects to keep Instacart’s brand, enterprise technology products and consumer app after the transaction closes. Until then, the companies said, they will continue to operate separately.

In statements released with the announcement, DoorDash co-founder and Chief Executive Tony Xu described online grocery as difficult to execute well and said Instacart had built expertise in serving grocers, while DoorDash had built a delivery network and technology platform used by local stores every day. Instacart Chief Executive Chris Rogers said the combination would allow the company to expand its grocery technology and retailer relationships by using DoorDash’s consumer reach and logistics network.

The proposed acquisition could also matter beyond grocery. For beverage makers that sell through supermarkets, convenience stores and other local retailers, a larger combined platform could eventually shape how shoppers discover products online, how promotions are targeted and how retail media spending is allocated. That could affect the balance of power in digital merchandising and negotiations for wines, beers, spirits and other drinks, especially if more consumer traffic and ordering data become concentrated in one retail technology and delivery network.

The companies did not present the deal as a direct play on beverages, but the overlap is significant because many alcohol and beverage purchases already move through the same grocery and local retail channels that both companies serve, subject to state and local rules. If the merger closes, suppliers may face a larger gatekeeper for digital shelf space and consumer access, while retailers could gain more tools to market and fulfill those orders from their own websites and apps.

The announcement adds to a broader push by delivery platforms to move beyond restaurant meals and capture more spending on groceries and everyday household goods. DoorDash said families often use Instacart for large weekly grocery trips and turn to DoorDash for restaurant meals and a wide range of neighborhood items delivered in under an hour. By bringing those patterns together, the company is betting that scale in logistics, software and advertising can help it win more of the local commerce market while giving retailers another way to compete online.