DoorDash to Buy Instacart Valued at $17 billion

DoorDash announced on Thursday, 29 October 2026, that it would acquire Instacart in a $17 billion deal. Their main aim is to take the next step into the fast-growing US grocery delivery market as app-based platforms face intense competition.

The deal focuses on helping the company expand beyond restaurant deliveries into groceries and other retail categories. It will compete with Walmart, Amazon and Uber Eats, which already have vast stores, warehouses and delivery networks.

DoorDash co-founder and CEO Tony Xu said, “Grocery is one of the hardest things to get right online.” Instacart founder Apoorva Mehta said the two companies had explored on and off for years. 

Under the deal, Instacart would receive $65 per share, about 26% above the stock’s closing price on October 22, before reports of deal talks emerged. The consideration will be at least 75% cash for Instacart shareholders who elect cash, DoorDash stock, or a combination of the two, the companies said. 

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Maplebear, shares of Instacart were $58.35 in early trading. They had hit a record high of $62 on Monday.

The transaction is expected to close at the end of 2027 or the first half of 2028.

DoorDash is thinking of controlling Instacart’s brand and app after the deal closes. Under the deal, Instacart must pay DoorDash a $650 million termination fee, while DoorDash would have to pay $1.25 billion if the deal is terminated under certain circumstances.