DoorDash agrees to buy Instacart for $17 billion, promising one membership for both
DoorDash will pay $65 a share, mostly in cash. Instacart keeps its brand and app, but the deal needs antitrust approval and won't close until 2027-28.
The skim
- DoorDash agreed Thursday to buy Instacart for $65 a share, an equity value of about $17 billion. Talks between them were first reported last week.
- Most of the price is cash. DoorDash says Instacart keeps its brand and app, and DashPass and Instacart+ members would pay one membership fee instead of two.
- Nothing changes yet. The deal isn't expected to close until the end of 2027 or the first half of 2028, and it needs antitrust approval.
The deal
DoorDash and Maplebear, which does business as Instacart, announced a definitive agreement on Thursday morning. The $65 price is a 26% premium to Instacart's closing price on Oct. 22, the last trading day before reports of a possible sale. According to CNBC, it's an 11% premium to Wednesday's close. Shareholders can choose cash, DoorDash stock or a mix of both. Stock is capped at 25% of the total, so at least 75% will be paid in cash. DoorDash will fund it with cash on hand and new debt, backed by a JPMorgan bridge loan. Instacart's board approved the deal unanimously, and holders of about 19% of its shares have agreed to vote for it.
The companies listed what customers would get. Instacart users could shop at more than 50,000 additional stores on top of the nearly 100,000 already on Instacart, and the single membership would save members an estimated $100 million a year in fees. DoorDash says it won't demand grocery exclusivity. Instacart shoppers will be able to keep working only on Instacart or also take DoorDash orders.
"Grocery is one of the hardest things to get right online," DoorDash CEO Tony Xu said in the announcement. Instacart CEO Chris Rogers said the deal "allows us to do even more."
Why it matters
This puts America's biggest food delivery app and the company that pioneered app-based grocery delivery under one roof. DoorDash handled about two-thirds of U.S. food delivery volume as of 2024, according to Bloomberg data cited by NBC News. Instacart works with more than 2,200 retail banners. Both face pressure from Amazon and Walmart, which keep speeding up same-day delivery of groceries and household items.
That overlap is also the biggest risk. DoorDash held talks to buy Instacart in 2021 that ended over antitrust worries, The Information reported at the time. CNBC notes that analysts expect scrutiny this time too. Third-party apps "remain a minority of total grocery consumption," Wedbush analysts wrote, but looking at the online market more narrowly "can make approvals more challenging." The deal needs U.S. Hart-Scott-Rodino clearance plus approvals in Canada and Israel.
What's next
Until the deal closes, DoorDash and Instacart keep operating as separate companies, so your apps, memberships and prices stay the same for now. Instacart shareholders still have to vote. DoorDash shares rose more than 8% in premarket trading, CNBC reported, and DoorDash planned to discuss the deal on its third-quarter earnings call Thursday morning.
Sources: DoorDash and Instacart, CNBC and NBC News.
