USA | DoorDash has confirmed an agreement to acquire grocery delivery platform Instacart in a transaction valued at approximately US$17 billion, following reports earlier this week that the two companies were in advanced negotiations.
Under the agreement, announced on 29 October, DoorDash will pay US$65 per Instacart share, representing a 26 percent premium to the company's closing share price on 22 October. At least 75 percent of the transaction will be funded in cash, with the remainder available through DoorDash shares.
The acquisition would bring together DoorDash's delivery network and Instacart's grocery fulfilment technology, retail partnerships, and advertising operations, expanding the companies' combined presence in online grocery.
DoorDash said the combined business would allow retailers to access delivery services, ecommerce technology, artificial intelligence tools, and retail media capabilities. It also expects to retain Instacart's brand, app, and enterprise technology products.
For grocery retailers, an important commitment is that DoorDash will not require exclusive delivery arrangements. Retailers will remain free to work with competing delivery platforms.
The companies also intend to combine their DashPass and Instacart+ membership benefits into a single subscription. DoorDash estimates this could save customers approximately US$100 million annually in membership fees.
Instacart currently works with more than 2,200 retail banners representing nearly 100,000 stores. DoorDash said the acquisition could give Instacart customers access to more than 50,000 additional stores.
The transaction remains subject to Instacart shareholder approval and regulatory clearance, including competition reviews in the United States, Canada, and Israel.
Completion is expected in late 2027 or the first half of 2028. Until then, DoorDash and Instacart will continue operating as independent companies.
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