Agreement would combine two major U.S. delivery platforms, expanding grocery fulfillment, retail technology and advertising services while facing regulatory review.
DoorDash Inc. has agreed to acquire Instacart in a transaction valued at approximately $17 billion, bringing together two of the nation’s largest third-party delivery platforms in a deal that could significantly reshape online grocery retailing.
The companies announced the definitive agreement Oct. 29, valuing Instacart, formally known as Maplebear Inc., at $65 per share. The purchase price represents a 26% premium to Instacart’s Oct. 22 closing stock price, the last trading day before reports of a potential transaction emerged.
Under the agreement, at least 75% of the consideration will be paid in cash, with Instacart shareholders able to elect cash, DoorDash stock or a combination of the two. Instacart’s board of directors unanimously approved the transaction.
The acquisition is expected to close in late 2027 or the first half of 2028, subject to shareholder approval, U.S. antitrust review and regulatory approvals in Canada and Israel. Shareholders representing approximately 19% of Instacart’s outstanding shares have agreed to support the transaction.
Combining Grocery Technology and Delivery Networks
The proposed combination would unite DoorDash’s delivery infrastructure with Instacart’s grocery fulfillment technology, retailer partnerships, advertising operations and enterprise software.
Instacart currently provides consumers access to nearly 100,000 stores through its platform. DoorDash said the acquisition could give Instacart customers access to more than 50,000 additional stores.
The companies also plan to combine their DashPass and Instacart+ membership benefits under a single subscription fee, potentially saving subscribers an estimated $100 million annually in membership costs.
For grocery retailers, the combined business would offer online ordering, fulfillment, delivery logistics, retail media advertising and artificial intelligence tools. DoorDash said retailers could also expand fulfillment capacity through its DashMart Fulfillment Services.
DoorDash co-founder and CEO Tony Xu said the transaction would give retailers additional technology and logistics capabilities to compete in online grocery.
“Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery,” Xu said.
Instacart CEO Chris Rogers said the combination would connect the company’s grocery technology and retailer relationships with DoorDash’s consumer reach and delivery operations.
Following completion, DoorDash expects to retain the Instacart brand, consumer app and enterprise technology products. Both businesses will continue operating independently until the transaction closes.
Grocery Competition and Regulatory Review
The transaction comes as DoorDash has expanded beyond restaurant delivery into grocery, convenience and general merchandise. The company began offering grocery delivery in 2020 and has since expanded its relationships with major retailers, including Kroger and Costco.
Instacart, founded in 2012, works with more than 2,200 retail banners and operates a network of approximately 600,000 independent shoppers. DoorDash operates in more than 40 countries and reported more than 3 billion orders in 2025.
The combination would also consolidate two significant competitors in third-party grocery delivery, potentially raising questions about retailer negotiating leverage, delivery fees, advertising costs and competition among fulfillment providers.
DoorDash said it would maintain an open platform, allowing grocery retailers to continue working with competing delivery services without exclusivity requirements. Instacart shoppers would retain the option to accept only Instacart assignments or also fulfill DoorDash orders.
Regulatory scrutiny is expected to be a significant factor in the transaction. On Oct. 28, New York City’s Department of Consumer and Worker Protection criticized the potential combination, expressing concerns about consolidation and protections for delivery workers.
The companies have not announced specific changes to retailer contracts, commission structures or advertising rates.
DoorDash expects to finance the cash portion of the acquisition through existing cash and new debt, supported by a bridge financing commitment from JPMorgan Chase. The transaction is not subject to a financing condition.
The proposed acquisition would give DoorDash a substantially larger presence in grocery ecommerce while extending Instacart’s technology and fulfillment services across a broader delivery network. Its ultimate impact on grocery retailers will depend on regulatory approval and how the companies integrate their platforms, pricing structures and merchant relationships.