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DoorDash and Instacart announced a definitive agreement for DoorDash to acquire Instacart at $65 per share, an equity value of about $17 billion. The consideration will be at least 75% cash, and the companies say the transaction still must complete the required approval process. Until closing, they will continue to operate independently.
DoorDash has agreed to acquire Instacart for $65 per share, putting an approximate $17 billion equity value on the grocery-delivery company and combining two major delivery and retail technology businesses. The companies say the deal would bring Instacart’s grocery platform together with DoorDash’s delivery network, but they will remain separate companies until the transaction closes.
The agreement sets the value at $65 for each Instacart share, a 26% premium to Instacart’s closing price on October 22, 2026, according to DoorDash. The transaction’s aggregate consideration will be at least 75% cash. Instacart shareholders may elect cash, DoorDash stock or a mix, subject to proration that caps DoorDash stock at 25% of the overall consideration. Instacart’s board unanimously approved the agreement.
DoorDash says the combined business would offer retailers access to its delivery network and Instacart’s grocery and fulfillment technology. The companies also point to their advertising and artificial-intelligence tools, and say Instacart’s brand, enterprise technology products and app are expected to remain after closing. DoorDash says Instacart customers could gain access to more than 50,000 additional stores, beyond the nearly 100,000 already on Instacart’s platform.
Other proposed customer and worker benefits are company projections, not outcomes already in place. DoorDash estimates DashPass and Instacart+ members could save about $100 million a year in membership fees by paying one fee instead of two. It also says the combination could create more earning opportunities for Dashers and Instacart Shoppers. DoorDash has pledged that local grocers would not face grocery exclusivity requirements and that Instacart Shoppers could retain their existing app features and choose whether to accept DoorDash orders.
A Larger Network for Grocery Delivery
The proposed deal would link DoorDash’s broad delivery network with Instacart’s grocery-specific technology and retailer relationships. For shoppers, the companies are promising more store options, delivery choices and potential savings; for grocers, they say the combination could provide tools to sell online without building every part of an e-commerce and delivery operation themselves.
The transaction also puts the companies’ claims about local retail and worker flexibility to a test. DoorDash says grocers will remain free to use competing delivery platforms, while shoppers will retain the choice to work through Instacart alone or take DoorDash orders too. Those commitments may matter to retailers and workers evaluating how much control they would retain after a merger. The announcement does not establish how the combined services or policies would work in practice.
For shareholders, the agreement offers a stated price and a choice of payment form, but the cash-and-stock mix is subject to the deal’s terms and proration. For customers, the projected membership savings depend on implementation and eligibility; they are not savings available immediately.
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Two Different Delivery Strengths
DoorDash describes its core strength as connecting local stores and restaurants to customers through its delivery network. Instacart focuses on grocery shopping and technology used by retailers, including online storefronts and fulfillment tools. The companies say their services serve different but overlapping shopping needs: Instacart is often used for larger grocery orders, while DoorDash handles restaurant meals and other local purchases.
The announcement frames the proposed combination against a shift toward online purchases of groceries and everyday goods. It argues that retailers with limited resources may find it difficult to build delivery fleets, digital storefronts and advertising products independently. That is the companies’ rationale for the deal; the announcement does not provide independent estimates of market effects or cost savings.
DoorDash says the combined company would keep Instacart’s identity and enterprise products after closing. Until then, the firms say they will remain separate and independent. The provided announcement does not state a target closing date or detail the full approval timetable.
““Grocery is one of the hardest things to get right online.””
— Tony Xu, DoorDash co-founder and CEO
Approvals and Deal Terms Ahead
The announcement does not specify when the deal is expected to close, what remaining regulatory or shareholder approvals are required, or whether any conditions could change the timetable. Instacart’s board has approved the agreement, but that approval alone does not complete the acquisition.
It is also unclear how the companies will integrate their platforms, how the promised single membership fee would be structured, or when customers might see wider store access. DoorDash’s estimates of membership savings and expanded earning opportunities are forecasts, not guaranteed results. The announcement also does not provide detailed plans for staffing, operational integration or the effect on competition.
Separate Operations Until Closing
DoorDash and Instacart say they will continue to operate independently while the agreement moves through its remaining steps. The next significant updates are expected to clarify the approval process, any conditions attached to closing and the anticipated completion date. Until the transaction closes, the announced customer savings, expanded store access and combined operating model should be treated as proposed benefits rather than current services.
Key Questions
What is DoorDash paying for Instacart?
The agreement values Instacart at $65 per share, or approximately $17 billion in equity value. DoorDash says the price represents a 26% premium to Instacart’s closing price on October 22, 2026.
How will Instacart shareholders be paid?
At least 75% of the aggregate consideration will be cash. Shareholders may elect cash, DoorDash stock or a combination, but the stock portion is subject to proration and cannot exceed 25% of the aggregate consideration.
When will DoorDash and Instacart combine?
The announcement does not give a closing date. The companies say they will remain separate and independent until the transaction closes.
Will Instacart keep its name and app?
DoorDash says it expects to keep Instacart’s brand, enterprise technology products and app after closing. That plan would take effect only if the deal is completed.
What changes are being promised for shoppers and workers?
DoorDash says Instacart customers could gain access to more than 50,000 additional stores and that DashPass and Instacart+ members could pay one membership fee. It has also pledged to preserve Instacart Shoppers’ flexibility and says local grocers would not be required to work exclusively with its platforms. These are stated plans and estimates, not changes already in effect.
Source: about.doordash.com
