DoorDash Moves to Acquire Instacart in $17 Billion Deal

The boards of both companies have approved the transaction, which values Instacart well above its current $13 billion market capitalization. Despite the acquisition, DoorDash intends to maintain the Instacart brand and its enterprise technology products as independent operations until the deal finalizes. This structure suggests a long-term integration strategy, with the merger expected to close between late 2027 and the first half of 2028.

Instacart CEO Chris Rogers noted that the union would expand the reach of their grocery technology, while DoorDash CEO Tony Xu emphasized the operational complexity of grocery delivery. Xu pointed to the specific challenges of item selection and temperature-sensitive logistics, areas where Instacart has established significant expertise. The deal follows failed discussions between Instacart and Uber, signaling that Instacart’s leadership sought to capitalize on a 25% year-to-date stock increase before market competition intensified further. The combined entity plans to leverage DoorDash’s fulfillment infrastructure to lower delivery costs for grocers while scaling Instacart’s advertising and ordering platforms.