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US-based food delivery company DoorDash on Thursday announced an agreement to acquire grocery delivery platform Instacart in a deal valued at approximately USD 17 billion, as consolidation gathers pace in the global food and grocery delivery market.
According to a joint statement issued by the two companies, DoorDash will acquire Instacart for USD 65 per share, representing a 26 per cent premium to Instacart's closing share price on October 22, the last trading day before reports of a possible transaction emerged. "DoorDash, Inc. (NASDAQ: DASH) and Maplebear Inc. (d.b.a. Instacart, NASDAQ: CART) today announced a definitive agreement under which DoorDash will acquire Instacart for a total value of $65.00 for each Instacart share, or an equity value of approximately $17 billion," the companies said in the statement. The transaction will involve at least 75 per cent cash, while DoorDash shares will account for no more than 25 per cent of the total consideration. Instacart shareholders can choose to receive cash, DoorDash shares or a combination of both, subject to certain conditions. Shares of DoorDash rose nearly 6 per cent in early US trading on Thursday, following the acquisition announcement and stronger-than-expected quarterly revenue. Instacart shares were largely unchanged at USD 58.35, according to Reuters. The acquisition comes amid growing consolidation in the global food delivery industry, as companies face rising operating costs, increasing competition and pressure to expand beyond restaurant deliveries. The industry has witnessed several major transactions, including DoorDash's acquisition of Deliveroo in 2025 and Uber's agreement to acquire Germany's Delivery Hero in July 2026. The proposed acquisition will combine DoorDash's delivery network with Instacart's grocery technology and retail partnerships, strengthening its position against large retailers such as Amazon and Walmart. Tony Xu, co-founder and CEO of DoorDash, 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." The companies said Instacart customers could gain access to more than 50,000 additional stores. They also plan to combine DashPass and Instacart+ memberships, potentially saving subscribers an estimated USD 100 million annually. Following the acquisition, DoorDash expects to retain Instacart's brand, application and enterprise technology products. The transaction is expected to close by the end of 2027 or in the first half of 2028, subject to Instacart shareholder approval and regulatory clearances, including antitrust review in the United States. Until then, both companies will continue operating independently. (ANI)
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