DoorDash Agrees to Buy Instacart in $17 Billion Deal

DoorDash has agreed to acquire Instacart in a deal valued at approximately $17 billion, bringing two major delivery businesses a step closer to combining restaurant takeout and grocery shopping under one company.

The agreement, announced Thursday, values Instacart at $65 per share. That is a 26% premium to its closing share price on October 22, before reports of a possible transaction. The announcement moves the companies beyond earlier acquisition talks, but the sale has not closed.

Instacart shareholders will be able to choose cash, DoorDash shares or a combination, subject to limits. At least 75% of the total consideration will be cash, while DoorDash stock will account for no more than 25%.

The companies expect the transaction to close at the end of 2027 or in the first half of 2028. It still requires approval from Instacart shareholders and regulators, including reviews in the United States, Canada and Israel. Instacart's board unanimously approved the agreement.

Until closing, DoorDash and Instacart will continue operating as separate, independent companies. DoorDash says it expects to retain Instacart's brand, app and enterprise technology products afterward.

The companies say the combination could give Instacart customers access to more than 50,000 additional stores, on top of nearly 100,000 already on its platform. They also plan to combine DashPass and Instacart+ membership benefits under one fee after the deal closes. These are planned benefits, not changes taking effect today.

DoorDash says local grocers would remain free to work with other delivery platforms. Instacart shoppers would be able to continue taking grocery orders without having to accept DoorDash orders.

DoorDash plans to fund the cash portion with existing cash and debt financing. For customers, retailers and delivery workers, the immediate change is the announcement itself: both services remain separate while the proposed acquisition goes through its approval process.