DoorDash reportedly to buy Instacart for $17B

DoorDash has agreed to buy Instacart in a $17 billion merger that would combine the two largest grocery delivery platforms in the United States. The deal, announced on Thursday, values Instacart at $65 per share in cash and stock. The companies would merge DoorDash's delivery network with Instacart's grocery shopping and fulfillment technology. DoorDash says the combined service could reach more stores and offer faster delivery. It also says the deal would help smaller grocers compete with Amazon and Walmart.

Deal terms and timeline

The deal is expected to close in late 2027 or the first half of 2028, after shareholder and regulatory approvals. DoorDash plans to merge its DashPass membership with Instacart+ into a single recurring fee. The timing could allow the companies to finish before the end of President Donald Trump's second term, potentially avoiding scrutiny from a new administration. The deal would also give Instacart customers access to more than 50,000 additional stores.

Customers could benefit in several ways. The combined subscription would replace two separate plans and is estimated to bring about $100 million in annual household savings. Delivery partners could combine orders from both platforms, giving them more flexible earning opportunities. Grocers and retailers of every size would get access to the advertising and AI tools each company has built, DoorDash says.

DoorDash also tested a drone delivery program earlier this year. The acquisition follows talks in 2021 that ended over price and antitrust concerns. Instacart had reportedly been exploring a sale, and it went public in 2023. Both companies turned profitable a year later. Uber was also reportedly a potential buyer.