DoorDash to Acquire Instacart for $17 Billion to Create Grocery and Restaurant Delivery Powerhouse

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DoorDash announced a $17 billion acquisition of Instacart, merging two leading on-demand delivery services to expand grocery and restaurant delivery offerings. The deal is expected to close by mid-2028.

On October 29, 2026, DoorDash revealed plans to acquire Instacart in a $17 billion deal that unites two dominant players in the on-demand delivery industry. The acquisition combines DoorDash’s leading position in restaurant takeout with Instacart’s strong presence in grocery delivery, aiming to bolster services for customers, retail partners, and brands.

DoorDash will purchase Instacart at a valuation of $65 per share, a proposal already approved by both companies’ boards. According to Instacart CEO Chris Rogers, the merger will leverage Instacart’s specialized grocery technology alongside DoorDash’s extensive consumer reach and logistics infrastructure. This synergy is expected to open new opportunities for grocers and brands, enhance customer and shopper experiences, and deliver shareholder value.

Post-acquisition, DoorDash plans to retain the Instacart brand and maintain its enterprise technology products and app. The two companies will operate independently until the transaction’s completion, which is anticipated in late 2027 or the first half of 2028.

DoorDash CEO Tony Xu emphasized the complexities of online grocery delivery, highlighting Instacart’s expertise in selecting quality produce and timely delivery, complemented by DoorDash’s reliable local delivery network. The combined capabilities aim to empower retailers of all sizes to develop their online ordering platforms and advertising channels, while potentially reducing delivery costs and increasing order fulfillment efficiency.

Currently valued at over $13 billion, Instacart’s stock has risen 25% year to date. Industry speculation had previously linked Instacart with possible talks with Uber, but those discussions ended without a deal, positioning DoorDash’s acquisition as a strategic move amidst intensifying market competition.

This merger marks a significant shift in the grocery and food delivery landscape, potentially redefining how local stores connect with consumers online and deliver products efficiently.