DoorDash is making a major push into grocery delivery, agreeing to acquire Instacart for $17 billion in a deal that would significantly expand its reach across the online retail market.
The acquisition would combine DoorDash’s delivery network with Instacart’s grocery technology and retailer relationships, expanding the services available to businesses selling through their own websites and third-party platforms.
Instacart already connects customers with nearly 100,000 stores, while DoorDash expects the deal to give Instacart customers access to more than 50,000 additional locations.
Tony Xu, co-founder and CEO of DoorDash, said: “Grocery is one of the hardest things to get right online. Someone has to pick a ripe avocado, find a substitute you’d choose yourself, and get the ice cream to you before it melts.”
He added: “Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery.”
The companies also plan to bring together their DashPass and Instacart+ membership benefits, with DoorDash estimating that subscribers could save around $100 million annually.
The deal would strengthen DoorDash’s position in retail advertising and grocery ecommerce technology, with Instacart’s enterprise tools continuing to operate under its existing brand.
Chris Rogers, CEO of Instacart, said: “Together, we can accelerate innovation across the grocery industry and make online grocery more seamless and affordable for the millions of households we serve.”
Under the agreement, Instacart shareholders will receive $65 per share in cash, DoorDash stock or a combination of both, representing a 26% premium to the company’s closing share price on 22 October.
The acquisition remains subject to shareholder and regulatory approvals, with completion expected in late 2027 or the first half of 2028. Both businesses will continue operating independently until the deal closes.
