DoorDash will acquire Instacart for an equity value of approximately $17 billion, with Instacart stockholders receiving $65.00 for each share. This represents a 26% premium over Instacart's closing price on October 22, 2026, the last trading day before media reports of a potential transaction. The aggregate transaction consideration will consist of at least 75% cash, with the remaining portion in DoorDash stock. Instacart stockholders may elect to receive cash, DoorDash common stock, or a combination, subject to proration to ensure DoorDash stock does not exceed 25% of the total consideration. Instacart's board of directors has unanimously approved the agreement.
The transaction is expected to close in late 2027 or the first half of 2028, pending approval from Instacart stockholders and various regulatory bodies, including those in the United States, Canada, and Israel. Stockholders holding approximately 19% of Instacart's outstanding shares have already agreed to vote in favor of the acquisition. Following the closing, DoorDash intends to maintain Instacart's brand, enterprise technology products, and existing app. Until the transaction is finalized, both DoorDash and Instacart will continue to operate as separate and independent companies.
DoorDash, founded in 2013, initially focused on restaurant delivery and expanded into grocery delivery in 2020. Instacart, established in 2012, specializes in grocery and convenience store delivery across the U.S. and Canada. Tony Xu, co-founder and CEO of DoorDash, stated that the acquisition will combine Instacart's expertise in grocery fulfillment with DoorDash's delivery network. He noted that grocery delivery presents unique challenges, such as selecting fresh produce and ensuring temperature-sensitive items arrive intact. Xu believes that together, the companies can provide retailers with more tools and enhance grocery delivery capabilities.
The acquisition comes as online grocery shopping continues to grow, with nearly 150 million Americans having shopped for groceries online in 2025, according to Capital One. DoorDash reported strong third-quarter 2026 results, with revenue increasing 34% year-over-year to $4.6 billion and total orders rising 28% to 993 million. Instacart also reported a strong third quarter, with gross transaction value increasing 15% year-over-year to $10.53 billion and total revenue up 17% to $1.1 billion.
This merger marks a significant consolidation in the online delivery sector, bringing together two major players. DoorDash aims to give Instacart customers access to more than 50,000 additional stores, supplementing the nearly 100,000 stores currently on the Instacart platform. The combined entity is expected to offer consumers more choices, faster delivery options, and potential savings when shopping locally.