DoorDash to buy Instacart for about $17 billion: what changes for shoppers, memberships and grocers
DoorDash will pay $65 a share, about $17 billion, for Instacart, merging memberships and adding 50,000 stores. The deal may not close until 2028.
At a glance
- DoorDash agreed on Thursday, October 29, to buy Instacart for $65 a share in cash and stock, valuing it at about $17 billion.
- The price is 26% above Instacart's October 22 close, the last trading day before reports of a sale, and 11% above Wednesday's close.
- Instacart keeps its brand and app; its users could reach about 50,000 more stores, and DashPass and Instacart+ would merge so shoppers pay one fee.
- Closing is not expected until the end of 2027 or early 2028. Canada's Competition Bureau is reviewing the deal and New York City's consumer agency has criticised it.
DoorDash has agreed to buy grocery delivery rival Instacart for about $17 billion, a deal that would put two of America's biggest delivery apps, one built on restaurants and the other on groceries, under one owner. The companies announced it on Thursday, October 29, with DoorDash paying $65 per Instacart share.
Customers will see no change for a long time. The deal is not expected to close until the end of 2027 or early 2028, and regulators have already begun asking questions.
The price, and how DoorDash will pay it
| Deal term | Detail |
|---|---|
| Price per Instacart share | $65.00 |
| Equity value | About $17 billion |
| Premium to October 22 close | 26% |
| Premium to October 28 close | 11% |
| Form of payment | Cash, DoorDash stock or a mix; stock capped at 25% of the total |
| Funding of cash portion | Cash on hand and new debt, no financing condition |
| Early shareholder support | Holders of about 19% of Instacart shares committed to vote yes |
| Expected closing | End of 2027 or first half of 2028 |
DoorDash shares rose more than 6% in morning trading on Thursday, while Instacart hovered near flat, a sign that investors had largely priced in the deal after a week of reports about a sale. Uber was also said to have been in talks before walking away. DoorDash and Instacart discussed a tie-up once before, in 2021, when talks ended over price and antitrust concerns.
What it means if you order groceries on either app
The companies have set out three main promises for shoppers, none of which applies before closing:
- More stores on Instacart. Users could reach about 50,000 additional stores on top of nearly 100,000 already available.
- One membership. DashPass and Instacart+ would be merged, so people who now pay for both would pay once.
- Faster delivery. The companies point to DoorDash's courier network as a way to speed up orders and cut delivery costs.
Prices are the open question. Neither company has made a commitment on fees, and fewer independent apps usually gives shoppers less leverage. New York City's consumer protection department has already described the deal as part of a troubling trend of consolidation.
For grocers, the pitch is different. DoorDash says smaller chains could use Instacart's technology to run their own online ordering and advertising, then use DoorDash drivers to fulfil those orders at lower cost.
Why a $17 billion bet on groceries, and why now
Both companies are responding to the same two rivals. Amazon has pushed hard into online groceries, using its warehouses to speed deliveries of perishables and pantry staples, and Walmart has expanded same-day and next-day delivery from its stores. Their scale threatens the on-demand model that DoorDash and Instacart depend on.
"Grocery is one of the hardest things to get right online," DoorDash chief executive Tony Xu said. Instacart's chief executive Chris Rogers said the deal would combine its grocery technology and retailer relationships with DoorDash's reach and logistics.
Instacart boomed during the pandemic and has struggled to hold that momentum since. Last December it agreed to pay $60 million to settle Federal Trade Commission allegations that it misled users with false advertising and unlawful subscription enrolment. DoorDash, by contrast, has been broadening fast, adding retailers such as Sephora, Macy's and Staples, and regional grocers after a Kroger partnership last year.
DoorDash's numbers on the day
The company published third-quarter results alongside the deal, and they beat forecasts.
| DoorDash Q3 2026 | Result | Analyst estimate |
|---|---|---|
| Adjusted earnings per share | $1.06 | 84 cents |
| Revenue | $4.62 billion | $4.56 billion |
| Marketplace gross order value | $33.9 billion, up 36% | $33.6 billion |
| Total orders | 993 million, up 28% | — |
The regulators who now get a say
The long timeline reflects the review ahead. Instacart's board approved the deal unanimously, but it still needs shareholder and regulatory clearance. Canada's Competition Bureau has said it will review the merger, and US antitrust authorities are expected to examine it too. Until closing, the two will keep operating as separate, independent companies.
Questions people are asking
Will Instacart shut down after the DoorDash deal?
No. DoorDash says it plans to keep the Instacart brand, app and enterprise technology, and the two companies stay separate until the deal closes, expected at the end of 2027 or in early 2028.
What happens to DashPass and Instacart+ memberships?
Nothing changes yet. After closing, the companies plan to merge the two memberships so shoppers pay for only one.
