DoorDash has officially announced an agreement to acquire its competitor, Instacart, in a deal valued at $17 billion. The transaction involves a purchase price of $65 per Instacart share. Boards of directors at both companies have already approved the acquisition.
Following the merger, DoorDash intends to maintain the Instacart brand, its enterprise technology products, and its mobile application. Both companies will continue to operate independently until the transaction is finalized. The deal is expected to close between late 2027 and the first half of 2028.
The integration aims to combine DoorDash’s logistics network and restaurant delivery dominance with Instacart’s grocery delivery infrastructure. DoorDash plans to leverage Instacart’s technology to help retailers expand their online ordering and advertising capabilities while utilizing its own fulfillment services to reduce delivery costs.
Instacart CEO Chris Rogers stated that the partnership will enhance services for retail partners and shoppers. DoorDash CEO Tony Xu noted that the move addresses the complexities of online grocery delivery, such as item selection and temperature-sensitive logistics. Previously, Instacart held acquisition talks with Uber, but those discussions were terminated.
