DoorDash announced Thursday that it has agreed to acquire rival Instacart for $17 billion. The acquisition would bring two major players in on-demand delivery under one roof, combining DoorDash’s dominance in restaurant takeout with Instacart’s reach in grocery delivery.
DoorDash will buy Instacart for a total value of $65 for each Instacart share, the company said. The deal was approved by the boards of directors of both companies.
“Over the past 14 years, Instacart has transformed online grocery shopping by helping retailers of all sizes compete and grow, and joining forces with DoorDash allows us to do even more,” said Chris Rogers, CEO of Instacart, in a press release.
“When our purpose-built grocery technology and trusted relationships with retailers and brands are combined with DoorDash’s global consumer reach and logistics capabilities, we can create new opportunities for our retail and brand partners, deliver an even better experience for customers and shoppers, and deliver compelling value to our shareholders.
DoorDash plans to keep Instacart’s brand, business technology products and app. The company also notes that the two brands will continue to operate as separate, independent companies until the transaction closes.
DoorDash says the deal could help more grocers create their own online ordering platforms and advertising businesses using Instacart’s technology, while grocers could also use DoorDash’s fulfillment services to handle more online orders and offer lower-cost delivery.
“Grocery is one of the hardest things to get online,” DoorDash CEO Tony Xu said in the press release.
“Someone has to pick a ripe avocado, find a substitute that you would choose yourself, and deliver the ice cream to you before it melts. Instacart has spent years learning how to do this well for grocers, while DoorDash has built a delivery network and technology that local stores rely on every day. Together, we could provide stores of all sizes with more of these tools and unlock the potential of grocery delivery. We’re only just getting started, but we know that when more people buy local, more money stays local,” Xu says.
Instacart currently has a market cap of over $13 billion and its stock price is up 25% year to date. The company likely saw this as an opportune time to sell at an attractive price, before competition in the food delivery market intensified.
Bloomberg previously reported that Instacart was in talks with Uber, but that the company backed out of the discussions.
The deal is expected to close around the end of 2027 or in the first half of 2028.
When you purchase through links in our articles, we may earn a small commission. This does not affect our editorial independence.
Gn bussni
