DoorDash has agreed to acquire Instacart for approximately $17 billion, a deal that would bring together two of the biggest names in US delivery and give the combined company a much larger role in how Americans shop for groceries.
Under the agreement announced Thursday, Instacart shareholders will receive consideration worth $65 per share, a 26% premium to the stock's closing price on October 22, before reports of a possible transaction became public.
At least 75% of the purchase price will be paid in cash, with the remainder potentially paid in DoorDash shares. JPMorgan Chase has committed a bridge financing facility to support the transaction.
The acquisition is expected to close in late 2027 or the first half of 2028, subject to shareholder and regulatory approval. Until then, the companies will operate independently.
For DoorDash, the purchase would extend a business originally built around restaurant delivery into a much broader retail platform.
The company has already expanded into groceries, convenience stores and other local commerce categories, while Instacart has developed an extensive network of supermarket partners and technology that powers online ordering for retailers.
Bringing those operations together would create a stronger competitor to Walmart, Amazon and Uber in a market where delivery, advertising and retail software are increasingly intertwined.
DoorDash says it plans to retain the Instacart brand, consumer app and enterprise technology products. The companies have also discussed the possibility of combining benefits from DashPass and Instacart+, their respective subscription programs.
Instacart customers could gain access to approximately 50,000 additional stores, while retailers would be able to use DoorDash's delivery network alongside Instacart's ordering, fulfillment and advertising technology.
The transaction comes as Instacart's underlying business continues to grow.
On Thursday, the company reported a 15% year-over-year increase in gross transaction value during the third quarter of 2026. Revenue grew 17%, and adjusted EBITDA reached $342 million, up 23%. Net income was $147 million.
That performance gives the acquisition a different character from a rescue deal. DoorDash is buying a profitable business with substantial retailer relationships and an established advertising operation, not simply acquiring delivery orders.
Instacart CEO Chris Rogers described the third quarter as the company's strongest since becoming publicly traded. Rogers took over the role following Fidji Simo's departure to OpenAI.
For Tony Xu, DoorDash's co-founder and CEO, the acquisition could accelerate a strategy that has increasingly focused on technology and services sold to merchants, alongside the consumer marketplace.
Yet combining two large delivery platforms is unlikely to escape regulatory scrutiny.
Both companies already have extensive relationships with retailers, couriers and shoppers. Bringing their operations together could raise questions about competition, merchant fees and the bargaining power of large delivery platforms.
The companies have committed to keeping their grocery platforms open to retailers that also work with competing delivery services.
Even with those assurances, the deal must clear competition reviews in several jurisdictions, including the United States, Canada and Israel.
If approved, the acquisition would rank among the largest transactions in the history of online delivery, turning DoorDash into a more formidable competitor across restaurant delivery, grocery fulfillment and retail technology.
For now, the agreement is signed, but the $17 billion transaction remains subject to closing.
Sources: Instacart's official announcement · DoorDash Q3 results · Instacart Q3 results · Associated Press