Delivery service DoorDash has agreed to buy grocery ordering platform Instacart. After the deal closes, customers are promised two subscriptions for the price of one, while keeping the separate Instacart app.
The agreement was announced on October 29. Instacart was valued at approximately $17 billion, or $65 per share. The purchase has not yet been completed: shareholder approval and regulatory clearances are required.
DoorDash is known for delivering ready meals, while Instacart is known for ordering and assembling groceries from stores. The buyer plans to combine its delivery network with Instacart's technologies for online sales, order processing, and advertising.
In the US grocery delivery market, they compete with Amazon and Walmart. Both giants already attract customers with subscription benefits: free delivery under certain conditions and discounts. Therefore, the competition is not only for individual orders but also for regular family purchases—from dinner tonight to weekly groceries.
DoorDash's promise concerns the DashPass and Instacart+ subscriptions: instead of two payments, the company plans to keep only one. It estimates the total customer savings at approximately $100 million per year. These terms are not yet in effect.
The Instacart brand and app are expected to be preserved. Order shoppers are promised the option to choose: fulfill only Instacart orders or also accept DoorDash orders. No changes to delivery fees have been announced yet.
At least 75% of the total consideration to shareholders is planned to be paid in cash, with the remainder in DoorDash shares. The buyer intends to finance the cash portion with its own funds and borrowed money.
The deal is expected to close in late 2027 or the first half of 2028, after obtaining the necessary approvals. Until the acquisition is completed, DoorDash and Instacart will continue to operate independently.
