DoorDash agrees to buy Instacart for $17 billion in major grocery delivery deal

DoorDash will pay $65 per Instacart share in a cash-and-stock deal worth about $17 billion, a 26% premium, bringing together two of the largest U.S. food and grocery delivery platforms.

DoorDash has agreed to acquire grocery delivery company Instacart in a cash-and-stock deal valued at about $17 billion, the companies announced Thursday. The announcement follows reports earlier this week that the two companies were in exclusive talks.

DoorDash will pay $65 per Instacart share, a 26% premium to Instacart's closing price on Oct. 22, the last trading day before media reports of a possible transaction. Instacart's board unanimously approved the agreement.

Instacart branding on a street in Miami, Florida (file photo)

At least 75% of the price will be paid in cash

At least 75% of the consideration will be paid in cash, with DoorDash shares capped at 25%. Instacart shareholders may choose cash, DoorDash stock or a mix, subject to proration. DoorDash will fund the cash portion with cash on hand and a 364-day senior unsecured bridge loan from JPMorgan Chase Bank.

Instacart's brand and app will stay

DoorDash said it will keep Instacart's brand, app and enterprise technology products. Instacart customers would gain access to more than 50,000 additional stores beyond the nearly 100,000 retail locations already on its platform, and DashPass and Instacart+ members would pay a single membership fee.

"Grocery is one of the hardest things to get right online," DoorDash co-founder and CEO Tony Xu said. Instacart CEO Chris Rogers said the deal would let the company accelerate innovation and create new opportunities for retail and brand partners.

The deal still needs regulatory approval

The transaction requires U.S. antitrust clearance, regulatory approvals in Canada and Israel and the approval of Instacart stockholders. Shareholders holding about 19% of Instacart's stock have agreed to vote in favor. The companies expect the deal to close in late 2027 or the first half of 2028.

DoorDash shares rose more than 5% after the announcement, while Instacart's fell about 1.5%.

DoorDash agrees to buy Instacart for $17 billion in major grocery delivery deal

DoorDash will pay $65 per Instacart share in a cash-and-stock deal worth about $17 billion, a 26% premium, bringing together two of the largest U.S. food and grocery delivery platforms.