DoorDash to Acquire Instacart in $17 Billion Deal
DoorDash has agreed to acquire Instacart for $65.00 a share, an equity value of about $17 billion, in a cash-and-stock deal expected to close in late 2027 or the first half of 2028, pending shareholder and antitrust approval.
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DoorDash has agreed to acquire Instacart in a definitive cash-and-stock deal that values the grocery delivery company at about $17 billion, the two companies announced on Thursday, October 29. Instacart stockholders will be offered $65.00 for each share they hold, a 26 percent premium to the closing price on October 22, the last trading day before media reports of a possible transaction emerged. The agreement, unanimously approved by Instacart’s board, is expected to close at the end of 2027 or in the first half of 2028, and until then the companies will continue to operate as separate and independent businesses.
The $17 billion figure is an equity value, the price for Instacart’s shares themselves. Stockholders may elect cash, DoorDash stock, or a mix for each share, with stock capped at 25 percent of the total and the consideration at least 75 percent cash in aggregate. Stockholders holding about 19 percent of Instacart’s outstanding shares have agreed to vote in favor of the deal, according to the companies’ joint announcement, which was also reported by Reuters.
DoorDash said it will fund the cash portion with cash on hand and debt financing backed by a JPMorgan Chase bridge loan commitment, and the deal is not subject to a financing condition. Closing requires approval by Instacart stockholders, clearance under the Hart-Scott-Rodino Antitrust Act, and other regulatory approvals including in Canada and Israel. Reuters reported that the long closing window suggests both sides expect an extended antitrust review.
The combination would be DoorDash’s biggest acquisition yet and its largest step beyond restaurant delivery into grocery and retail, a push Reuters described as a bid for greater scale against retailers such as Walmart and Amazon. Instacart, formally Maplebear Inc., partners with more than 2,200 retail banners representing nearly 100,000 stores. DoorDash said that after closing, Instacart customers could shop at more than 50,000 additional stores, members of DashPass and Instacart+ would pay one membership fee instead of two, saving an estimated $100 million a year, and Instacart’s brand, enterprise technology products and app would be kept. It also pledged that local grocers could work with any delivery platform they choose, with no grocery exclusivity, a commitment tracked on our Corporate America desk.
“Grocery is one of the hardest things to get right online,” said Tony Xu, co-founder and chief executive of DoorDash, in the announcement. Instacart chief executive Chris Rogers said joining DoorDash would create new opportunities for retail and brand partners and deliver value for shareholders. For shoppers, grocers and delivery workers, nothing changes until the deal closes, which will depend first on the shareholder vote and the antitrust review.
Educational coverage — not tax or investment advice.