Tech · $DASH
DoorDash Agrees to Buy Instacart for $17 Billion in Mostly Cash Deal
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The $65-a-share offer is a 26% premium; DoorDash shares rose in premarket trading, with closing not expected until late 2027 or 2028.
By Emma Cruz ·
DoorDash said on Thursday it has agreed to acquire Instacart in a deal that values the grocery-delivery company's equity at about $17 billion, combining two of the largest U.S. on-demand delivery platforms [1].
Under the terms, Instacart stockholders will receive $65.00 per share, a 26% premium to the stock's closing price on October 22, the last trading day before media reports of a possible transaction [1]. Instacart's corporate parent is Maplebear Inc., which filed the announcement with the Securities and Exchange Commission [1].
The deal is structured to be mostly cash. Shareholders can choose $65.00 in cash, 0.3372 DoorDash shares, or a mix of $48.75 in cash plus 0.0843 DoorDash shares for each Instacart share, with DoorDash stock capped at 25% of the total consideration and subject to proration [1]. DoorDash said it will pay with cash on hand and new debt, backed by a commitment from JPMorgan Chase Bank for a 364-day senior unsecured bridge loan, and that it aims to keep its investment-grade credit ratings [1]. The agreement has no financing condition [1].
Both companies' boards have approved the transaction [2]. It still needs approval from Instacart stockholders, with holders of about 19% of the shares already committed to vote in favor, along with the expiration of the U.S. antitrust waiting period under the Hart-Scott-Rodino Act and regulatory approvals in other jurisdictions, including Canada and Israel [1]. The companies expect the deal to close toward the end of 2027 or in the first half of 2028 [1], a long timeline that leaves room for a lengthy regulatory review.
Until then, the two businesses will continue to operate separately [1]. After closing, DoorDash plans to keep the Instacart brand, its app and its enterprise technology products, which supermarkets use to run their own online ordering [1]. Instacart's shoppers will keep their current features and can choose whether to take DoorDash orders [1].
DoorDash co-founder and Chief Executive Tony Xu framed the deal around local retail, saying "when more people shop local, more dollars stay local" [1]. Instacart CEO Chris Rogers said the company has "transformed online grocery" over the past 14 years [2].
Investors initially welcomed the move. DoorDash shares were up more than 5% in premarket trading on Thursday [3]. Instacart had a market value of more than $13 billion before the announcement, and its stock had gained 25% so far this year [2]. TechCrunch noted that Bloomberg had previously reported that Instacart held talks with Uber but walked away from those discussions [2].
The acquisition arrives on a difficult day for growth stocks more broadly, with the Nasdaq Composite down more than 1% around midday as Alphabet and several software companies fell after earnings [3].
Why it matters: grocery is one of the largest remaining categories for delivery platforms, and the combination would put two major networks of shoppers, couriers and retail partners under one owner. For DoorDash shareholders, the debt-funded structure means the company's balance sheet and credit ratings will be in focus while the deal awaits approval.
What to watch next: the Instacart shareholder vote, the scope and length of the antitrust review, how DoorDash's debt financing is arranged, and how competitors in grocery delivery respond in the meantime.
Sources:
[1] Maplebear Inc. (SEC filing), "DoorDash to Acquire Instacart to Help Local Stores Win", October 29, 2026. https://www.sec.gov/Archives/edgar/data/0001579091/000119312526437075/d171568dex991.htm
[2] TechCrunch, "DoorDash to acquire Instacart for $17B", October 29, 2026. https://techcrunch.com/2026/10/29/doordash-to-acquire-instacart-for-17b/
[3] Yahoo Finance, "Stock market today: Dow, S&P 500, Nasdaq fall as Alphabet stock sell-off drags on tech, AI jitters return", October 29, 2026. https://finance.yahoo.com/markets/live/stock-market-today-thursday-october-29-dow-sp-500-nasdaq-alphabet-microsoft-earnings-130305714.html
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.