As of 9:35 AM IST, Friday 30 October 2026. The deal was announced on Thursday 29 October (US time) and still needs shareholder and regulatory approval.
DoorDash has agreed to buy Instacart in a cash-and-stock deal that values the grocery delivery company at about $17 billion, bringing together two of the largest US delivery platforms. DoorDash will pay $65 per Instacart share, a 26% premium to Instacart's closing price on 22 October, the last trading day before media reports of the talks.
The deal terms
| Item | Detail |
|---|---|
| Price | $65 per Instacart share; equity value about $17 billion |
| Premium | 26% to the 22 October close |
| Mix | At least 75% cash. Holders can elect $65 cash, 0.3372 DoorDash shares, or $48.75 cash plus 0.0843 DoorDash shares per share, subject to proration |
| Financing | 364-day bridge loan from JPMorgan; no financing condition |
| Approvals | Instacart stockholders, US HSR antitrust clearance, and approvals in Canada and Israel |
| Expected close | End of 2027 or the first half of 2028 |
Instacart's board approved the deal unanimously, and stockholders representing about 19% have agreed to vote in favour, according to DoorDash. Reuters reported that Instacart would owe a $650 million break fee in some circumstances, while DoorDash would pay $1.25 billion in certain cases.
What DoorDash is promising
- Instacart keeps its brand and its own app.
- No grocery exclusivity: retailers can keep working with other platforms.
- Members of both DashPass and Instacart+ will pay a single fee, which DoorDash estimates saves those members about $100 million a year.
- Instacart users get access to more than 50,000 additional stores on top of the roughly 100,000 Instacart already serves.
- DoorDash expects more than $500 million in annual synergies, net of investments, over several years.
"Grocery is one of the hardest things to get right online," DoorDash CEO Tony Xu said in the announcement. Instacart CEO Chris Rogers said that "over the last 14 years, Instacart has transformed online grocery."
Why grocery, and why now
Restaurant delivery is a maturing business, and both companies are chasing bigger, more frequent grocery baskets. "Restaurant delivery is maturing, and growth now lies in more frequent, higher-value orders," Morningstar analyst Martin Szumski said, as reported by Reuters. The combined group would still face large rivals: Wedbush estimates, cited by Yahoo Finance, put Walmart at about 30.9% and Amazon at about 23.6% of US online grocery.
Reuters, citing a source, reported that talks began over the summer and that Uber held preliminary talks with Instacart but passed. HorizonDesk reported earlier that the two companies were in advanced talks.
The regulatory question
"The main risk is regulatory approval," CFRA said, according to Reuters. The BBC reported that New York City's Department of Consumer and Worker Protection described the deal as part of a "troubling trend" of consolidation; the agency reached a $131.5 million settlement with DoorDash last month, the BBC said. The long timeline to close, into 2027 or 2028, reflects the expected antitrust review.
Market reaction and DoorDash's quarter
DoorDash shares rose nearly 6% in early trading on Thursday, Reuters reported, while Instacart's shares were little changed around $58, below the $65 offer. Instacart had hit a record high of $62 on Monday. The gap suggests investors are pricing in some risk that the deal is blocked or delayed.
DoorDash also reported third-quarter results the same day: revenue of $4.6 billion (up 34%), net income of $466 million, 993 million orders (up 28%), gross order value of $33.9 billion (up 36%) and adjusted EBITDA of about $1.06 billion. It guided fourth-quarter gross order value to $35.4 billion to $36.4 billion.
Disclaimer: This article is for information only and is not financial or investment advice. Share prices move quickly; check current quotes before making any decision.
Related reading on HorizonDesk
Sources
- DoorDash: DoorDash to acquire Instacart (press release)
- Reuters via Investing.com: DoorDash strikes $17 billion deal for US rival Instacart
- BBC News: DoorDash-Instacart deal report
- Yahoo Finance: DoorDash stock pops, Instacart falls after deal announcement
- DoorDash Investor Relations: third-quarter 2026 results
