DoorDash has agreed to buy Instacart for $65 per share in a major expansion of its grocery delivery business. The companies promise more shopping options and membership savings, but the acquisition faces potential antitrust scrutiny.
DoorDash announced Thursday, October 29, 2026, that it has agreed to acquire grocery delivery company Instacart in a transaction valued at approximately $17 billion. The agreement would combine two of the largest delivery platforms in the United States, expanding DoorDash’s grocery business and strengthening its competition with Walmart and Amazon.
Under the agreement, Instacart shareholders would receive $65 per share in cash, DoorDash stock or a combination of both. The offer represents a 26% premium over Instacart’s closing stock price on October 22, the final trading day before reports of a possible acquisition emerged.
The transaction must receive shareholder and regulatory approval before it can be completed. Both companies expect the acquisition to close in late 2027 or the first half of 2028, allowing time for potentially extensive antitrust reviews.
The agreement is DoorDash’s largest proposed acquisition and represents a major expansion beyond its traditional restaurant delivery business. Instacart specializes in grocery shopping, order fulfillment and technology services used by thousands of retail locations.
How the $17 Billion Acquisition Will Work
DoorDash plans to pay at least 75% of the transaction’s value in cash, with no more than 25% consisting of DoorDash common stock. Instacart shareholders will have several options for receiving payment, although their final consideration may be adjusted depending on shareholder elections.
Investors can elect to receive $65 in cash, approximately 0.3372 DoorDash shares or a combination of $48.75 in cash and 0.0843 DoorDash shares. The agreement includes provisions to ensure that the total stock issued does not exceed the specified limit.
DoorDash intends to finance the cash portion using its existing resources and borrowed funds. JPMorgan Chase has committed to providing a temporary bridge loan facility to support the transaction if needed.
The purchase is not subject to a financing condition, meaning DoorDash cannot simply withdraw because its preferred funding arrangement becomes unavailable. The companies have also established termination fees under certain circumstances if the acquisition cannot proceed.
Instacart’s board of directors unanimously approved the agreement, and shareholders holding approximately 19% of the company’s outstanding shares have agreed to support it. The remaining required approvals must still be obtained before ownership can transfer.
DoorDash and Instacart Plan to Keep Separate Apps
DoorDash intends to preserve the Instacart name, consumer application and technology products after completing the acquisition. Customers would continue accessing both services through their existing platforms rather than being required to switch immediately to a single app.
The companies believe their operations complement each other because customers often use DoorDash for restaurant meals and smaller purchases while relying on Instacart for larger grocery orders. Combining delivery networks and technology could help stores handle both types of purchases more efficiently.
DoorDash CEO Tony Xu said grocery delivery presents challenges that differ from delivering prepared restaurant food. Grocery orders require accurate item selection, appropriate substitutions and handling that keeps perishable products in suitable condition.
Instacart has developed technology to address those challenges through its shopping platform and relationships with retailers. DoorDash would contribute its delivery network, international operations and experience coordinating large numbers of orders.
Instacart currently works with more than 2,200 retail banners representing nearly 100,000 stores. Under the proposed combination, its customers could gain access to more than 50,000 additional locations through DoorDash’s network.
The companies also want to expand their technology offerings for grocery stores, including online ordering systems, delivery management, advertising and artificial intelligence tools. These services could become an important source of revenue beyond collecting fees from individual orders.
Membership Savings Could Reach $100 Million Annually
One of the most visible changes for consumers could involve the companies’ subscription programs. DoorDash plans to connect DashPass and Instacart+ so customers can receive benefits from both programs through a single membership payment.
The companies estimate that the arrangement could save subscribers approximately $100 million annually in membership fees. These are projected savings based on the planned integration, not benefits that are available immediately.
The proposed combined membership could give customers easier access to grocery delivery, restaurant orders and purchases from other local retailers. However, the companies have not announced final pricing, eligibility rules or the complete benefits package.
DoorDash also expects the acquisition to expand shopping choices and improve delivery efficiency. Whether those changes translate into lower overall prices will depend on service fees, merchant pricing and the costs of combining the operations.
Customers will continue using the existing DoorDash and Instacart services while the transaction awaits approval. The companies are required to operate independently until the acquisition is completed.
Grocery Retailers and Delivery Workers Seek Assurances
The proposed acquisition could have significant implications for grocery stores that rely on Instacart to manage online shopping. Many retailers use its technology to provide delivery services without developing their own systems.
Some businesses may benefit from access to DoorDash’s larger delivery network and advertising capabilities. Others could become concerned about depending on a single company for technology, delivery operations and customer access.
DoorDash has promised that grocery stores will not be required to use its delivery services exclusively. Retailers would remain free to work with competing platforms, including companies that provide similar transportation and fulfillment services.
Instacart’s approximately 600,000 contract shoppers are another important group affected by the announcement. The companies say those workers will retain their ability to choose assignments and determine when they want to work.
Instacart shoppers would not be required to accept DoorDash deliveries as a condition of continuing their existing work. The companies argue that additional order volume could create more earning opportunities, although future changes to worker compensation have not been fully detailed.
New York City’s Department of Consumer and Worker Protection criticized the proposed combination as part of a broader trend toward consolidation in the delivery industry. Regulators and worker advocates have expressed concerns that fewer competing platforms could reduce opportunities for workers and merchants.
Antitrust Review Could Delay or Block the Deal
The acquisition is expected to attract attention from competition regulators because DoorDash and Instacart already operate in overlapping grocery delivery markets. Combining them could reduce the number of independent companies available to customers and retailers.
Reuters reported that the Federal Trade Commission is likely to examine the transaction closely, particularly as federal officials focus on affordability and rising household expenses. Regulators may investigate whether the combined business could increase delivery fees or gain excessive bargaining power over grocery stores.
The review could also examine the technology services Instacart provides to retailers that compete with DoorDash in certain markets. Access to retail sales information, customer behavior and delivery infrastructure may become important considerations.
DoorDash argues that the acquisition would help smaller grocery businesses compete with major retailers that operate their own delivery networks. Critics question whether bringing two established delivery services under common ownership would ultimately reduce competition.
The companies must satisfy U.S. antitrust requirements and obtain other regulatory approvals, including those required in Canada and Israel. A lengthy review could require changes to the transaction or prevent it from proceeding.
DoorDash has agreed to pay a termination fee of up to $1.25 billion in specified circumstances, while Instacart could owe $650 million under separate provisions. These arrangements demonstrate the financial importance of completing the agreement but do not guarantee regulatory approval.
DoorDash Reports Strong Third-Quarter Earnings
The acquisition announcement coincided with DoorDash’s third-quarter financial results, which showed continued growth in orders and revenue. The company reported $4.6 billion in revenue, an increase of 34% compared with the same period in 2025.
Net income attributable to common stockholders rose 91% to $466 million, while total orders increased 28% to 993 million. Marketplace gross order value reached approximately $33.9 billion, reflecting continued expansion across its services.
Instacart also reported stronger financial performance, with third-quarter gross transaction value increasing 15% from a year earlier. Its revenue grew 17%, and the company recorded $147 million in net income.
Instacart canceled its previously scheduled November earnings conference call following the acquisition announcement. Its financial results and the agreed purchase terms will instead be evaluated as part of the proposed transaction.
DoorDash has expanded through previous acquisitions, including Finnish delivery company Wolt and British food delivery service Deliveroo. Purchasing Instacart would further strengthen its position in the U.S. grocery market while broadening its technology business.
The companies believe their combined operations could create additional revenue through advertising, merchant services and delivery efficiencies. Those expected benefits remain forecasts that depend on completing the purchase and successfully integrating the businesses.
For now, DoorDash and Instacart remain independent competitors, with customers and workers continuing to use their existing services. The next major step is the regulatory review, which will help determine whether the $17 billion acquisition can proceed on its proposed terms.
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