The two biggest names in app-based delivery are planning to become one. On Thursday, October 29, DoorDash announced a definitive agreement to acquire Instacart, the grocery delivery and technology company formally known as Maplebear Inc., in a deal that values Instacart at about $17 billion.
If it closes, it will be DoorDash’s largest acquisition ever and will put restaurant takeout, quick convenience orders and the big weekly grocery shop under one corporate roof. Here is what we know, based on DoorDash’s official announcement and reporting from the BBC.
The deal in numbers
DoorDash is offering $65 for each Instacart share. That is a 26% premium to Instacart’s closing price on October 22, the last trading day before media reports about a possible deal surfaced.
At least 75% of the total consideration will be paid in cash. Instacart stockholders can choose cash, DoorDash stock or a mix of both, but stock is capped at 25% of the total, so some elections may be prorated. DoorDash says it will fund the cash portion with cash on hand and new debt, backed by a bridge loan commitment from JPMorgan Chase.
Instacart’s board unanimously approved the agreement, and holders of about 19% of Instacart’s shares have agreed to vote in favor.
Why DoorDash wants Instacart
DoorDash built its business on restaurant delivery, but the company and outside analysts both point to groceries and everyday retail as the next big growth area. A Morningstar analyst quoted by the BBC put it simply: restaurant delivery is maturing, and growth now lies in more frequent, higher-value orders such as weekly grocery shops, convenience items and retail.
Instacart brings exactly what DoorDash lacks at scale. It works with more than 2,200 retail banners covering nearly 100,000 stores, and it sells technology that powers grocers’ own websites, in-store tools and advertising networks.
DoorDash CEO Tony Xu framed the deal around how hard grocery is to get right online. “Someone has to pick a ripe avocado, find a substitute you’d choose yourself, and get the ice cream to you before it melts,” he said in the announcement. Instacart CEO Chris Rogers said combining Instacart’s grocery technology with DoorDash’s reach and logistics could make online grocery “more seamless and affordable.”
The companies also position the deal as a way for local and regional grocers to compete with the largest online retailers, which are building their own delivery fleets, warehouses, memberships and AI shopping assistants.
What could change for customers
Nothing changes yet. Until the deal closes, DoorDash and Instacart will keep operating as separate, independent companies. After closing, DoorDash says it expects to keep the Instacart brand, app and enterprise technology.
The companies have outlined a few promised benefits:
- More stores: Instacart customers could shop at more than 50,000 additional stores on top of the roughly 100,000 already on the platform.
- One membership instead of two: DashPass and Instacart+ members would pay a single membership fee, which the companies estimate would save members about $100 million a year in fees combined.
- Faster delivery options: Grocers could tap DoorDash’s delivery network and its DashMart Fulfillment Services to add capacity for online orders.
Those are company projections. How pricing, fees and service actually work will only become clear after the deal is approved and the businesses begin to integrate.
What it means for Dashers, Shoppers and stores
DoorDash says Instacart Shoppers will keep the features they value, including flexibility over how much they work and the information they use to decide which orders to accept, and will be able to choose whether to take DoorDash orders or stay on Instacart only.
For retailers, DoorDash has pledged an “open platform” with no grocery exclusivity, meaning grocers can keep working with whichever delivery platforms they choose.
The regulatory road ahead
The deal is not expected to close until the end of 2027 or the first half of 2028. It needs Instacart shareholder approval, clearance under the U.S. Hart-Scott-Rodino antitrust review, and other regulatory approvals, including in Canada and Israel.
The deal could face close antitrust scrutiny. Reuters, as cited by the BBC, noted the merger may raise competition concerns with regulators.
Critics have already spoken up. New York City’s consumer and worker protection agency, which reached a $131.5 million settlement with DoorDash last month over allegations of underpaying workers, called the deal part of “a troubling trend of mega-corporations consolidating.” It added that it will enforce delivery workers’ rights whether or not the merger goes ahead.
The bottom line
DoorDash is betting that groceries, not just dinner, are the future of on-demand delivery, and buying Instacart is the fastest way to get there. For now, your apps work exactly as they did last week. Watch for the regulatory review over the next year or more, because that is where the promises about choice, prices and worker flexibility will be tested.
Image: Fruit section of a grocery store by Alabama Extension via Wikimedia Commons, CC0 1.0
