DoorDash has agreed to buy Instacart for $65 a share, or about $17 billion in equity value. The companies announced the deal alongside DoorDash’s third-quarter results. The price is a 26% premium to Instacart’s October 22 close, the last trading day before reports of a possible deal.
Under the terms, at least 75% of the price will be paid in cash. Instacart shareholders can choose $65 in cash, 0.3372 DoorDash shares, or a mix of $48.75 in cash plus 0.0843 shares. However, the deal will not close quickly. It needs shareholder and regulatory approval in the U.S., Canada and Israel, and is expected to close between the end of 2027 and the first half of 2028.
Why DoorDash wants Instacart
DoorDash leads restaurant delivery, but grocery is harder to win. “Grocery is one of the hardest things to get right online,” said DoorDash CEO Tony Xu. Instacart, by contrast, has spent years building grocery tools: shopping, fulfillment, retail advertising and AI.
Together, the companies say they can offer more choice. Instacart customers would gain access to more than 50,000 additional stores, on top of the roughly 100,000 already on its platform. In addition, DashPass and Instacart+ members would pay one membership fee instead of two, which DoorDash says would save customers about $100 million a year.
After closing, DoorDash plans to keep the Instacart brand, app and enterprise products. Importantly, grocers would not be locked into a single delivery platform. “Together, we can accelerate innovation across the grocery industry,” said Instacart CEO Chris Rogers.
What it means for last-mile delivery
If approved, the deal would combine the two biggest independent delivery apps in the U.S. According to YipitData’s analysis of 2025 orders across restaurant, grocery and retail delivery, DoorDash held 65.1% of the market and Instacart 9.1%. Uber Eats held 25.8%.
For that reason, regulators are expected to look closely. The Federal Trade Commission is likely to review the deal, Reuters reported. Already, the FTC is studying whether delivery apps, including DoorDash and Instacart, use shopper data to set prices and driver pay. Emarketer analyst Zak Stambor pointed to “meaningful overlap,” especially in grocery delivery.
On the other hand, DoorDash is likely to argue that it competes with much larger players. Walmart, Amazon, Target and Gopuff all offer same-day grocery delivery. Walmart, for example, recently approved DoorDash as one of eight new parcel carriers for its marketplace sellers.
What retailers and shippers should watch
- Delivery fees and terms. With fewer independent platforms, grocers and retailers may have less leverage on commissions. Therefore, review your delivery-partner contracts before renewal.
- Retail media. Instacart’s advertising business would join DoorDash’s. As a result, brands could reach more shoppers through one platform, but at less competitive ad prices.
- Driver supply. Dashers and Instacart Shoppers would share one network. In turn, that could improve coverage in smaller markets.
- The regulatory timeline. Nothing changes for at least a year. Until then, watch for an FTC second request, which would signal a lengthy review.
- Alternatives. Keep options open with Uber Eats, Walmart, Amazon and regional last-mile carriers in case the combined company changes terms.
