DoorDash announced Thursday that it has entered into an agreement to acquire rival grocery courier Instacart in a transaction valued at roughly $17 billion, setting up a massive union of two major American delivery networks.
Under the terms of the agreement, DoorDash will pay $65 per share to take control of Instacart, CBS News reported. The blockbuster transaction, which is anticipated to conclude in late 2027 or the first half of 2028, remains subject to regulatory review and standard closing terms.
DoorDash stated that even after the purchase is finalized, it intends to preserve the Instacart smartphone application, enterprise technology tools, and independent branding. Rather than combining operations into a single consumer destination, both digital services will continue operating side by side.
Expanding digital grocery shelves
The takeover is designed to broaden DoorDash’s presence across supermarket aisles while giving Instacart customers access to more than 50,000 additional merchant locations, The Verge reported. In addition, members of DashPass and Instacart Plus will eventually be able to pay a single membership fee rather than maintaining two separate recurring subscriptions.
Instacart Chief Executive Officer Chris Rogers said the combination would make “online grocery more seamless and affordable” for millions of families, according to The Verge.
Tony Xu, co-founder and chief executive of DoorDash, highlighted the complementary strengths of the two companies. “Grocery is one of the hardest things to get right online,” Xu said in a statement cited by CBS News and The Verge. “Instacart has spent years learning to do that well for grocers, while DoorDash has built a delivery network and technology that local stores rely on every day. Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery.”
Market pressure and courier flexibility
DoorDash initially rose to prominence ferrying takeout meals from neighborhood eateries, but the company has steadily pushed into supermarket aisles and retail goods. Earlier in the year, the business also started experimenting with drone drop-offs, Engadget reported. However, competition has grown fierce as rivals such as Uber, Walmart, and Amazon pour significant resources into their own logistics fleets, fulfillment hubs, and automated shopping features.
Prior reports from The Information and The Wall Street Journal revealed that Instacart had been evaluating sale prospects, with Uber among the firms exploring a potential bid before DoorDash struck a final agreement, according to Engadget.
The current agreement marks a renewed effort between the two delivery giants. DoorDash had previously engaged in discussions to acquire Instacart at a higher valuation during 2021, but those earlier talks collapsed amid disagreements over price and worries regarding antitrust scrutiny, Engadget reported.
To ease transition concerns among workers and merchants, DoorDash outlined several commitments regarding post-closing operations. Couriers working on Instacart’s marketplace will continue setting their own schedules and can choose whether to accept DoorDash assignments or concentrate entirely on grocery shopping, The Verge reported. Furthermore, local supermarket partners will not face platform exclusivity rules, allowing them to collaborate freely with alternative delivery services.
What happens next
The transaction now heads into an extensive review process where corporate regulators and shareholders are expected to closely evaluate the consolidation of market share across digital grocery delivery. Until all regulatory permissions and closing hurdles are cleared in late 2027 or early 2028, both businesses will continue running as separate companies.
