Key Takeaways:
- DoorDash agreed to buy Instacart at a premium to its share price before deal reports surfaced.
- The combined company plans to offer grocers and retailers delivery, fulfillment, advertising and AI tools in both apps and on stores’ own websites.
- The deal follows DoorDash’s partnership bringing independent specialty retailers onto its marketplace.
DoorDash, Inc. has agreed to acquire Maplebear Inc., which does business as Instacart, in a deal that values the grocery technology company at $65 per share, or an equity value of about $17 billion.
The price is a 26% premium to Instacart’s closing price on Oct. 22, 2026, the last trading day before media reports about a possible transaction. Instacart’s board of directors unanimously approved the agreement.
Deal Terms
At least 75% of the consideration will be paid in cash. Instacart stockholders can choose cash, DoorDash stock or a mix of both, with stock capped at 25% of the total.
DoorDash plans to fund the cash portion with cash on hand and debt financing, backed by a bridge loan commitment from JPMorgan Chase Bank.
Tools for Grocers and Retailers
The companies said the combined business will offer grocers and retailers of every size DoorDash’s delivery network and Instacart’s grocery and fulfillment technology, both in the two apps and on stores’ own websites. Each company’s advertising and AI tools are part of the offering as well.
According to the announcement, the biggest online retailers and grocers are building their own delivery fleets, warehouses, membership programs and AI shopping assistants, and a grocer or retailer running on thin margins cannot build all of that alone.
“Grocery is one of the hardest things to get right online,” Tony Xu, Co-Founder and CEO of DoorDash, said in a statement. “Someone has to pick a ripe avocado, find a substitute you’d choose yourself, and get the ice cream to you before it melts.”
“Over the last 14 years, Instacart has transformed online grocery by helping retailers of all sizes compete and grow, and joining forces with DoorDash allows us to do even more,” Instacart CEO Chris Rogers said in a statement.
Instacart partners with more than 2,200 retail banners. DoorDash operates in more than 40 countries through brands including DoorDash, Deliveroo, SevenRooms and Wolt.
Customers and Shoppers
Instacart customers could shop at more than 50,000 additional stores, on top of the nearly 100,000 stores on the platform today. DashPass and Instacart+ members would pay one membership fee instead of two, which DoorDash estimates would save them $100 million per year.
Among its post-close commitments, DoorDash pledged an open platform with no grocery exclusivity, meaning local grocers can work with any delivery platform they choose. Instacart Shoppers can choose whether to take on DoorDash orders or keep shopping only on Instacart.
After closing, DoorDash expects to keep Instacart’s brand, enterprise technology products and app.
The Locally Partnership
The deal follows DoorDash’s partnership with Locally, announced in September, which brought independent specialty retailers onto the DoorDash Marketplace. Locally connects more than 1,000 premium brands with more than 62,000 retail locations, including more than 20,000 independent specialty stores, in categories such as running shoes, cycling gear, outdoor equipment, ski and snowboard gear, and fishing equipment.
DoorDash also serves as a last-mile provider within Locally’s Same-Day Delivery program, letting brands offer same-day delivery on orders placed through their own websites, with the sale fulfilled by the nearby authorized retailer.
Timing and Approvals
The Instacart deal is expected to close at the end of 2027 or in the first half of 2028. It requires approval from Instacart stockholders, expiration or termination of the Hart-Scott-Rodino waiting period and other regulatory approvals, including in Canada and Israel. Stockholders holding about 19% of Instacart’s outstanding shares have agreed to vote in favor.
