DoorDash announced on Thursday it will buy grocery delivery rival Instacart in a deal valued at about $17 billion, combining the largest US restaurant delivery service with the country’s top grocery delivery app.
DoorDash will pay $65 per Instacart share, a mix of cash and stock with at least 75 percent paid in cash, and the deal has been approved by the boards of both companies.
DoorDash said it expects to keep Instacart’s brand, enterprise technology products and app, and the two brands will continue to operate as separate and independent companies until the transaction closes, which is expected in late 2027 or early 2028.
The deal steps up DoorDash’s push into grocery delivery as growth in restaurant delivery matures and competition intensifies from Amazon, Walmart and Uber.
Instacart, formally known as Maplebear, went public in 2023; its shares hit a record high of $62 on Monday following reports that DoorDash was nearing a takeover deal. DoorDash has a market value of about $73 billion.
The deal follows a wave of consolidation in the delivery industry, including Uber’s deal for Delivery Hero earlier this year and DoorDash’s purchase of Deliveroo in 2025.
Source: Reuters
