DoorDash and Instacart are joining forces in a deal that would bring two of the country’s biggest food delivery platforms under one roof.
DoorDash announced Thursday that it has agreed to buy Instacart in a deal worth approximately $17 billion.
Under the agreement, DoorDash will acquire Instacart for $65 per share in a combination of cash and stock. The deal is expected to close in late 2027 or the first half of 2028, pending shareholder and regulatory approvals.
In a press release, DoorDash said the acquisition would combine its delivery network with Instacart’s grocery shopping and fulfillment technology. The company is pitching the deal as a way to help smaller grocery chains and retailers better compete with retail giants like Amazon and Walmart, which have been expanding their online shopping and delivery services.
“Grocery is one of the hardest things 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,” said DoorDash co-founder and CEO Tony Xu in the press release. “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 and unlock the potential of grocery delivery.”
This is a breaking story and will be updated with further details…
