DoorDash to Acquire Instacart for $17 Billion

DoorDash announced a definitive agreement to acquire Instacart for approximately $17 billion. The transaction values each Instacart share at $65, with at least 75% of the consideration paid in cash. Shareholders may elect to receive DoorDash stock or a combination of both. The boards of directors for both companies have unanimously approved the deal.

The acquisition combines DoorDash's restaurant takeout operations with Instacart's grocery delivery network. Following the transaction, Instacart customers will have access to more than 50,000 additional stores. DoorDash plans to retain Instacart's brand, enterprise technology products, and app. Membership fees for DashPass and Instacart+ will be consolidated, saving an estimated $100 million annually.

Instacart CEO Chris Rogers said the partnership allows the company to expand after transforming online grocery over 14 years. DoorDash CEO Tony Xu noted that grocery is one of the hardest categories to manage online. The two companies will operate independently until the deal closes, which is expected toward the end of 2027 or in the first half of 2028.