DoorDash agreed today to buy Instacart in a deal valuing its equity at approximately $17 billion, with plans to let DashPass and Instacart+ members pay a single membership fee. DoorDash says Instacart customers could gain access to more than 50,000 additional stores through the combination. The companies expect closing in late 2027 or the first half of 2028, putting those proposed benefits more than a year away.
The agreement values each Instacart share at $65.00, a 26% premium over its October 22 closing price, before media reports of a potential deal. DoorDash estimates that charging members one fee across DashPass and Instacart+ would save them $100 million annually in membership costs alone. Instacart already has nearly 100,000 stores on its platform.
DoorDash expects to retain the Instacart app, brand and enterprise technology products after closing. The businesses will operate independently until then. DoorDash says the combined business would make its delivery network and Instacart’s technology for groceries and order fulfillment available through both apps and retailers’ websites, alongside advertising and AI tools.
DoorDash has committed to allowing local grocers to use other delivery platforms after the acquisition. Instacart Shoppers would retain control over how much they work and access to information used to select batches. They could also decide whether to accept DoorDash orders or continue taking only Instacart shopping work.
Instacart’s board unanimously approved the agreement, and shareholders representing about 19% of its outstanding shares have pledged their support. Completion still requires Instacart shareholder approval and regulatory clearances, including in Canada and Israel, as well as satisfaction of other closing conditions. The deal also depends on the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ending or being terminated.
Cash will account for at least 75% of the total payment, with DoorDash shares capped at 25%. Instacart shareholders can choose cash, stock or both, although proration may adjust what they receive. DoorDash plans to use existing cash and debt financing for the cash portion, and the agreement does not make completion contingent on financing.
