DoorDash to acquire Instacart for $17 billion

Overview

Updated 54 minutes ago

DoorDash agreed to buy Instacart for about $17 billion, folding America's two largest on-demand delivery apps into one company. The deal, announced October 29, pays $65 a share and is expected to close in late 2027 or the first half of 2028.

Instacart brings roughly 100,000 stores and its grocery ordering technology; DoorDash brings its delivery network and restaurant base. Their pitch: together they can counter Amazon and Walmart, which are building same-day grocery operations at scale. The deal needs stockholder approval and antitrust clearance in the United States, Canada, and Israel.

Why it matters

If approved, one company controls most of America's on-demand delivery, leaving grocers fewer online options as Amazon and Walmart expand.

Questions about this story

Free account needed to ask — your question is kept and asked for you right after sign-up. Answers are public.

No questions yet — be the first to ask.

Key Indicators

$17 billion

Equity value of the deal

DoorDash pays $65.00 per Instacart share, a 26% premium over the October 22 close.

$65.00

Offer price per Instacart share

Stockholders can take cash, DoorDash stock, or a mix, with cash set at least 75% of total consideration.

26%

Premium over pre-report stock price

Measured against Instacart's closing price on October 22, the last trading day before deal reports.

~100,000

Stores on the Instacart platform

DoorDash says Instacart customers would gain access to 50,000 additional stores on its network.

600,000

Instacart shoppers

Independent contractors who fulfill orders; DoorDash says they can keep choosing their own batches and hours.

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

Tony Xu

Co-founder and chief executive, DoorDash

Will lead the combined company

Fidji Simo

Chief executive, Instacart

Leading Instacart through the acquisition

Organizations Involved

DoorDash

Public delivery company

Acquirer

The largest U.S. food and on-demand delivery platform, now expanding into groceries.

Instacart (Maplebear Inc.)

Public grocery technology company

Acquisition target

The largest U.S. grocery delivery platform, with roughly 100,000 retail stores on its network.

Federal Trade Commission (FTC)

Federal Agency

Expected reviewer of the deal

The U.S. agency that reviews mergers for anti-competitive effects, alongside the Justice Department.

Timeline

June 2012 October 2026

5 events Latest: Today

Tap a bar to jump to that date

October 2026
DoorDash announces $17 billion Instacart acquisition
Today Deal

DoorDash agrees to buy Instacart for $65 a share, combining the two largest U.S. delivery apps.
Today
Deal reports surface
Media

Last trading day before press reports of a possible DoorDash-Instacart transaction.
7 days ago
September 2023
Instacart goes public
IPO

Instacart lists on Nasdaq under ticker CART, a major test for gig-economy stocks.
September 2023
2013
DoorDash founded
Founding

Tony Xu and Stanford classmates launch a restaurant delivery app in Palo Alto.
2013
June 2012
Instacart launches
Founding

Apoorva Mehta and co-founders start a grocery delivery service in San Francisco.
June 2012

Scenarios

DoorDash closes Instacart acquisition as planned

Likely Resolves by Q2 2028

Discussed by: Company statements; stockholders holding about 19% of Instacart shares have already committed to vote in favor.

The Hart-Scott-Rodino waiting period expires without a challenge, Canadian and Israeli approvals clear, and Instacart stockholders approve. The deal closes in late 2027 or the first half of 2028. The companies then integrate memberships, apps, and advertising, while keeping the Instacart brand distinct.

Regulators move to block the $17 billion deal

Possible Resolves by Q2 2028

Discussed by: Wedbush analysts, who note the companies' overlap in third-party delivery could complicate approval.

Federal Trade Commission lawyers examine the overlap in on-demand delivery and grocery technology. They file suit to block the deal, or signal opposition strong enough that the companies walk away before a court fight. A federal judge then rules on whether the combination would reduce competition.

Deal closes late after concessions or divestitures

Possible Resolves by End of 2028

Discussed by: Analysts noting the open-platform commitments DoorDash announced upfront, which may preempt some concerns.

Regulators demand conditions to protect grocers and independent stores: guarantees about platform access, data portability, or the sale of some assets. The companies accept and close later than the original late-2027 target. Integration proceeds but with limits on how DoorDash can bundle its services.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

June-August 2017

Amazon buys Whole Foods (2017)

Amazon agreed to acquire Whole Foods for $13.7 billion, putting its logistics and Prime membership behind 460 grocery stores. The deal remade expectations for grocery delivery overnight.

Then

Amazon gained a physical grocery footprint and cut prices at Whole Foods, pressuring supermarket chains and delivery startups.

Now

Amazon's grocery push is a core reason DoorDash and Instacart say they need to combine: both face a rival that owns stores, warehouses, and delivery fleets.

Why this matters now

Amazon's scale in online grocery is the competitive pressure the DoorDash-Instacart deal answers.

October 2022-December 2024

Kroger-Albertsons merger blocked (2022-2024)

Kroger agreed to buy Albertsons for $24.6 billion, which would have created the largest U.S. supermarket chain. The Federal Trade Commission sued to block it in February 2024, and a federal judge halted the deal.

Then

The merger collapsed in December 2024 after courts sided with regulators.

Now

The FTC's victory set a precedent for aggressive review of grocery consolidation, signaling the scrutiny DoorDash and Instacart now face.

Why this matters now

Shows the current antitrust climate around grocery and delivery markets, where the FTC has shown willingness to sue.

June 2020-2021

Just Eat Takeaway buys Grubhub (2020)

European delivery firm Just Eat Takeaway agreed to buy Grubhub for $7.3 billion, creating one of the world's largest food delivery companies. The deal faced a lengthy regulatory review across multiple jurisdictions.

Then

The merger closed in 2021 but struggled with competition from DoorDash and Uber Eats.

Now

Just Eat Takeaway later sold Grubhub at a fraction of the purchase price, a cautionary tale about delivery consolidation.

Why this matters now

A previous delivery mega-merger that faced regulatory hurdles and value destruction, relevant to DoorDash-Instacart's outlook.