October 29, 2026 — DoorDash has agreed to acquire Instacart in a transaction valued at approximately $17 billion, intensifying its expansion into the U.S. grocery delivery market as competition among app-based platforms continues to grow.
The acquisition, DoorDash’s largest to date, would strengthen its position beyond restaurant delivery and give it greater scale across groceries and other retail categories. The combined business would be better positioned to compete with major retailers such as Walmart and Amazon, which operate extensive store, warehouse and delivery networks.
DoorDash co-founder and CEO Tony Xu said grocery delivery is particularly challenging to execute online, noting that Instacart has spent years developing its capabilities and relationships with grocery retailers.
Instacart founder Apoorva Mehta said the companies had considered combining their businesses on and off for years.
How the Deal Came Together
According to a source familiar with the matter, DoorDash and Instacart began discussing a potential transaction over the summer. In early September, Instacart’s CEO informed Xu that the company was exploring strategic alternatives.
Instacart also held preliminary discussions with Uber, but the ride-hailing company ultimately declined to pursue a deal. The decision was partly influenced by Uber’s announcement several months earlier of a $14.8 billion acquisition of German food delivery platform Delivery Hero, the source said.
DoorDash and Instacart did not immediately respond to the requests for additional details about when negotiations began.
The proposed acquisition comes amid a broader wave of consolidation in the delivery industry, as companies face slower order growth, higher operating costs and increasing regulatory scrutiny over gig-worker treatment.
Morningstar analyst Martin Szumski said the restaurant delivery market is maturing, while more frequent and higher-value purchases, including weekly grocery orders, convenience items and other retail products, are becoming important growth opportunities.
Online grocery shopping has also gained traction as consumers increasingly prioritize convenience. Higher gasoline prices during the war in Iran could provide another incentive for shoppers to avoid trips to physical stores.
Meanwhile, AI-native platforms are changing how consumers shop online. More shoppers have begun making purchases through agentic AI platforms, including Meta’s Muse and the personal assistant app Instinct.
Inside the $17 Billion Transaction
DoorDash is offering Instacart shareholders $65 per share, representing a premium of approximately 26% over Instacart’s closing price on October 22, before reports of acquisition discussions first emerged.
At least 75% of the consideration will be paid in cash. Instacart shareholders can elect to receive cash, DoorDash shares or a combination of both, according to the companies.
Instacart, formally known as Maplebear, shares were flat at $58.35 in early trading. The stock had reached a record high of $62 on Monday.
DoorDash shares rose nearly 6% after the company also reported better-than-expected quarterly revenue. Despite the gain, its shares had declined approximately 25% for the year through the previous session’s close.
Regulatory Approval Remains a Major Hurdle
The transaction is expected to close at the end of 2027 or during the first half of 2028.
CFRA Research analysts identified regulatory approval as the deal’s principal risk. They said the extended closing timeline suggests both companies anticipate a lengthy antitrust review.
Although the current regulatory environment may be favorable to the transaction, the analysts warned that the lengthy process leaves the deal vulnerable to changes in policy.
New York City’s Department of Consumer and Worker Protection said on Wednesday that the potential merger continued what it described as a “troubling trend” of corporate consolidation.
Instacart Brand to Remain After Acquisition
DoorDash plans to retain Instacart’s brand and app after the transaction closes. The companies also intend to combine their membership programs.
DoorDash has pledged not to require grocery retailers to use its delivery services exclusively, a commitment that could be significant for retailers seeking flexibility in their delivery partnerships.
A regulatory filing states that Instacart would be required to pay DoorDash a $650 million termination fee, while DoorDash would owe $1.25 billion if the transaction is terminated under certain circumstances.
If completed, the acquisition would mark a major step in DoorDash’s strategy to diversify its business and capture more frequent consumer purchases as competition in restaurant delivery intensifies.
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