DoorDash Agrees $17bn Takeover of Instacart

DoorDash has agreed to acquire grocery delivery platform Instacart in a transaction valued at approximately $17 billion, bringing together two major American delivery businesses as competition for household spending intensifies.

The companies announced the agreement on Thursday, valuing Instacart at $65 per share, a 26% premium to its closing share price on 22 October. At least 75% of the consideration will be paid in cash, with the remainder potentially issued in DoorDash shares. The acquisition is expected to close in late 2027 or early 2028, subject to shareholder and regulatory approvals.

The combination would extend DoorDash's presence beyond restaurant delivery and strengthen its position in online grocery shopping. Instacart currently works with hundreds of retail partners and approximately 600,000 independent shoppers, while DoorDash operates an extensive network of restaurants, convenience stores and retailers. The companies plan to retain their respective brands and applications, while exploring a unified subscription offering combining DashPass and Instacart+. The agreement could also provide participating retailers with greater access to technology and delivery infrastructure.

However, the proposed merger will attract scrutiny over its implications for competition, particularly as large retailers develop their own delivery services. Smaller grocery businesses could benefit from broader distribution, although the concentration of delivery platforms may also influence fees and commercial terms. For DoorDash, the acquisition represents an ambitious effort to become a larger intermediary between consumers and everyday retailers. Whether that ambition succeeds will depend on regulatory approval and effective integration.