DoorDash buying Instacart for $17B: What this means for customers
DoorDash to by Instacart for $17 billion
DoorDash is gobbling up Instacart in a $17 billion acquisition that will supercharge its grocery delivery business. DoorDash said the Instacart brand name and app will remain, and Instacart shoppers can continue fulfilling orders for Instacart. Grocers can also choose to work with Instacart or DoorDash. Instacart customers will now have access to 50,000 additional stores covered by DoorDash, the company said.
DoorDash is buying rival delivery app Instacart in a $17 billion deal.
DoorDash announced the news in a press release Thursday and said both companies’ boards of directors approved the sale.
DoorDash-Instacart deal
By the numbers:
According to DoorDash, the $17 billion deal equals $65 per Instacart share, with at least 75% of the transaction being cash. Instacart stockholders can choose cash, DoorDash stock or both, as long as it "does not exceed 25% of the aggregate consideration."
DoorDash announced it is buying rival Instacart in a $17 billion deal. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
DoorDash delivered 993 million orders in the third quarter of 2026, according to The New York Times, a 28 percent increase year-over-year. Customers spent nearly $34 billion, and DoorDash took in $4.6 billion in revenue. Instacart delivered 90.3 million orders in the second quarter and had revenue of more than $1 billion.
What they're saying:
"Grocery is one of the hardest things to get right online," DoorDash CEO and co-founder Tony Xu 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. Instacart has spent years learning to do that well for grocers, while DoorDash has built a delivery network and technology that local stores rely on every day. Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery. It’s still early innings, but we know that when more people shop local, more dollars stay local."
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"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. "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 for our retail and brand partners, offer an even better experience for customers and shoppers, and deliver compelling value for our shareholders. Together, we can accelerate innovation across the grocery industry and make online grocery more seamless and affordable for the millions of households we serve."
DoorDash said it plans to keep Instacart’s brand and app after the deal is final. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
Timeline:
The deal is expected to close at the end of 2027 or the first half of 2028.
What does the Door Dash-Instacart deal mean for customers?
What we know:
DoorDash said it plans to keep Instacart’s brand and app after the deal is final.
Why you should care:
According to DoorDash, the deal will add 50,000 additional store options for Instacart customers, while also allowing Instacart+ and DashPass customers the option to pay one membership fee instead of two.
What we don't know:
It’s unclear whether DashPass and Instacart+ membership fees will go up when the deal is complete.
The Source: This report includes information from DoorDash and The New York Times.