DoorDash announced Thursday it will purchase Instacart for $17 billion, bringing together two of the biggest names in on-demand delivery. The transaction pairs DoorDash's strength in restaurant takeout with Instacart's foothold in grocery delivery. Both companies' boards have given their approval to the deal.
DoorDash will pay $65 for each share of Instacart, according to the company's statement. Instacart's market capitalization currently stands above $13 billion, and its shares have climbed 25% so far this year. The transaction isn't expected to finalize until late 2027 or the first six months of 2028. Bloomberg had earlier reported that Instacart held discussions with Uber but ended those talks without reaching an agreement.
Instacart CEO Chris Rogers said in the announcement that the combination allows the company to expand its impact after 14 years of reshaping online grocery shopping. "When our purpose-built grocery technology and trusted retailer and brand relationships are combined with DoorDash's global consumer reach and logistics capabilities, we can create new opportunities," Rogers stated. DoorDash CEO Tony Xu emphasized the difficulty of online grocery, noting that "someone has to pick a ripe avocado, find a substitute you'd choose yourself, and get the ice cream to you before it melts." DoorDash intends to maintain Instacart's brand, its enterprise technology offerings, and its standalone app, with both platforms running independently until the deal closes.
The merger positions grocers to gain access to more sophisticated tools for building their own digital storefronts and advertising operations through Instacart's existing technology infrastructure, according to DoorDash's announcement. Retailers would also be able to tap into DoorDash's delivery network to manage increased online order volume and reduce shipping costs. The company framed the strategic rationale around solving grocery's operational complexity — Instacart has refined its approach to product selection and substitution for retailers over many years, while DoorDash has constructed a logistics system that local merchants depend on daily. The timing reflects Instacart's recognition that competition in grocery delivery is intensifying, making the current valuation an attractive exit point for shareholders. The combined entity could channel more consumer spending back to neighborhood businesses, Xu noted, because expanded local shopping means more revenue remains in local economies. The test now is whether two sprawling delivery infrastructures can integrate smoothly enough to deliver on those promises without sacrificing the specialized service quality each brand built separately.