DoorDash has agreed to acquire rival Instacart in a deal that values the grocery delivery company at about $17 billion, paying $65 per share, a 26% premium to Instacart’s October 22 close. Shareholders can elect cash, DoorDash stock, or a mix, with total stock consideration capped at 25%; the deal has no financing condition, DoorDash owes Instacart a $1.25 billion fee if regulators block it, and closing is expected at the end of 2027 or in the first half of 2028. The main objective is to strengthen DoorDash’s position in grocery and ecommerce delivery against Walmart and Amazon by combining its delivery network with Instacart’s grocery and fulfillment technology, retaining the Instacart brand and app and offering customers a single membership fee for DashPass and Instacart+. Key players include DoorDash co-founder and CEO Tony Xu, who said grocery is one of the hardest things to get right online, and Instacart CEO Chris Rogers.
DoorDash to Buy Instacart in $17 Billion Deal
