US-based DoorDash has agreed to acquire grocery technology company Instacart at an equity value of approximately $17bn.
Instacart’s Board of Directors unanimously approved the deal, under which the company’s shareholders will receive $65 a share.
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This consideration represents a 26% premium over Instacart’s closing share price on 22 October 2026.
The takeover consideration will consist of at least 75% cash while DoorDash equity will be capped at a maximum of 25%.
Subject to proration, Instacart stockholders may select one of three payout structures per share: $65 in cash; 0.3372 shares of DoorDash common stock; or a blend of $48.75 in cash and 0.0843 shares of DoorDash common stock.
DoorDash intends to fund the cash component through debt financing alongside cash from its balance sheet.
DoorDash co-founder and CEO Tony Xu said: “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.”
The two enterprises will continue to operate independently until completion.
Following the close of the deal, DoorDash plans to maintain the Instacart brand, its standalone application, and its enterprise technology suite.
Under post-transaction commitments, DoorDash confirmed it would not impose grocery exclusivity on local retailers.
Additionally, Instacart Shoppers will keep their independent order selection capabilities and the option to decline order routing from DoorDash.
The combined business also intends to introduce unified membership benefits across DashPass and Instacart+.
The organisations said the agreement comes amid increasing competition from major online retailers expanding warehouse capacity, AI capabilities, and internal logistics networks.
The transaction is scheduled to close in late 2027 or the first half of 2028.
Completion remains subject to customary closing conditions, US antitrust clearance, regulatory approvals in Canada and Israel, and approval from Instacart stockholders, with investors holding roughly 19% of outstanding shares already committed to vote in favour.
Instacart CEO Chris Rogers said: “Together, we can accelerate innovation across the grocery industry and make online grocery more seamless and affordable for the millions of households we serve.”
