The DoorDash Instacart deal will pay $65 a share, or $17 billion, uniting a major food delivery company with a top U.S. grocery delivery service. DoorDash said Thursday it will buy Instacart in cash and stock, a 26% premium to the close before the first reports, the Los Angeles Times reported. Closing is expected in late 2027 or early 2028, and DoorDash plans to keep Instacart’s brand, technology and app.
Key Takeaways
- Offer price is $65 a share in cash and stock, a 26% premium.
- DoorDash expects the acquisition to close in late 2027 or early 2028.
- Instacart customers could gain more than 50,000 additional stores.
- The FTC opened a probe into how DoorDash and Instacart set prices.
What the DoorDash Instacart Deal Includes
DoorDash, founded a year later in San Francisco, started in restaurant delivery, moved into grocery in 2020, and later partnered with Kroger in 2022 and Costco last month, CBS News reported. Instacart, founded in 2012, handles grocery and convenience delivery in the U.S. and Canada, went public in 2023, and does not deliver prepared meals.
After closing, shoppers will be able to subscribe to both apps through one account. DoorDash estimated that single membership will save customers $100 million a year on membership fees. It also said it will not force exclusivity, so grocers and retailers can keep working with other platforms.
Grocery is one of the hardest things to get right online. 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.
Tony Xu, DoorDash’s co-founder and CEO, said that in a statement reported by the Times. On a conference call, Xu said DoorDash would be able to “re-accelerate the Instacart marketplace.”
More Stores, Websites and Local Retailers
DoorDash said Instacart customers could shop at more than 50,000 additional stores, on top of the nearly 100,000 stores on the platform today. The Times put the added reach at 50,000 stores on top of roughly 100,000. DoorDash said shoppers should see speedier delivery and local savings, and independent contractors more freedom and earning opportunities.
The companies say the combination can help stores of every size, including locals that cannot build delivery software, compete with Amazon and Walmart. DoorDash said the deal would let more supermarkets use Instacart’s platform to run their websites, CBS News reported. For web teams, those website tools are the concrete piece, and the apps stay separate until the close. Campaign creative can still follow advertising built for food retailers.
Delivery Share, Earnings and Market Value
CBS News said revenue rose 34% and orders rose 28% in earnings released Wednesday. The Times said third-quarter orders rose 28% and gross order value rose 36% to $33.9 billion. Consumer Edge data cited by CBS put DoorDash at nearly 61% of food-delivery share by the end of 2024, versus about 26% for Uber Eats and about 6% for Grubhub.
Instacart’s share of spending on U.S. delivery platforms has fallen to 18% from 26% five years ago, also according to Consumer Edge. Nearly 150 million Americans grocery shopped online as of 2025, Capital One figures cited by CBS show.
| Metric | DoorDash | Instacart |
|---|---|---|
| Market value | $75 billion (Times); $73 billion (CBS) | Around $13 billion |
| Thursday shares | Up 3% to $177.62; down 20% this year | Fell nearly 2% in midday trading Thursday to above $57; up 30% this year |
| Platform position | Nearly 61% of food delivery, end of 2024 | 18% of spending on U.S. delivery platforms, down from 26% five years ago |
Scott Hanson, co-founder of Allworth Financial, said the tie-up “could create a little more monopolistic power,” while also offering a chance to “compete more head-on with Amazon.” The combination has already raised antitrust concerns, the Times reported.
An FTC Pricing Probe Brands Should Track
On Thursday the Federal Trade Commission opened a probe into DoorDash, Instacart and seven other companies across retail and transportation to examine how they set prices, CBS News reported. Groundwork Collaborative has slammed personalized pricing, which uses AI and consumer data to charge different shoppers different prices for the same item, as unfair and predatory. In an investigation last year, the group found identical grocery items on Instacart could differ by as much as 23%.
Do not treat these apps as already one ad network or one checkout. What Xu has described is more stores, a shared membership, website tools for grocers, and help growing first-party software for retailers.
- Keep DoorDash and Instacart on separate plans until the close.
- Treat the 50,000-store expansion as conditional on review.
- Do not expect exclusive grocery contracts; DoorDash says it will not require them.
- Document personalized price tests while the FTC probe is open.
Retailers still weighing in-house delivery can revisit how Walmart.com once said no to online grocery delivery. DoorDash wants Instacart’s grocery tools because that work is hard and Amazon and Walmart already have scale.
