DoorDash has agreed to acquire Instacart, a grocery technology company, at an equity value of approximately $17 billion. Instacart’s Board of Directors unanimously approved the deal, which will see the company’s shareholders receive $65 a share.
DoorDash’s offer for Instacart reflects a 26% increase over the company’s share price at the close of trading on October 22, 2026. The purchase will be funded primarily, at least 75%, with cash, while DoorDash stock will account for no more than 25% of the total payment.
Shareholders of Instacart will have three choices for how to receive their payout per share: $65 in cash, 0.3372 shares of DoorDash stock, or a mix of $48.75 in cash plus 0.0843 shares of DoorDash stock. DoorDash plans to cover the cash portion using borrowed funds as well as existing reserves.
Tony Xu, DoorDash’s co-founder and CEO, explained that Instacart has developed expertise in serving grocers over time, whereas DoorDash has constructed a delivery infrastructure and technology platform that small businesses depend on daily. Xu argues that merging the two companies will provide retailers of all sizes with stronger resources and expand the possibilities for grocery delivery.
Both companies will remain separate operations until the deal finalizes. After the acquisition, DoorDash intends to preserve Instacart’s branding, its dedicated app, and its enterprise software tools. Additionally, DoorDash has pledged not to force grocery exclusivity agreements on local merchants.
Instacart’s shoppers will retain control over which orders they accept and the ability to reject assignments from DoorDash. The merged company also plans to combine perks from DashPass and Instacart+ into a single membership program. The deal is expected to finalize in late 2027 or the first half of 2028, pending regulatory reviews and standard closing requirements.
Chris Rogers, Instacart’s CEO, emphasized that the partnership will drive faster advancements in grocery technology and improve convenience and affordability for millions of customers. The move follows rising pressure from large online retailers that are scaling up warehouses, AI systems, and in-house logistics operations. DoorDash and Instacart will operate independently until the deal is completed.
