By Basant El-Faramawy
DoorDash announced Thursday it will acquire grocery delivery company Instacart in a deal valued at approximately $17 billion, combining two major players in the food and grocery delivery sector.
Deal Terms and Premium
The acquisition price is set at $65 per Instacart share, representing a 26% premium over the closing price on October 22, the last trading day before media reports of a possible transaction emerged.
Consumer and Business Benefits
The companies said the merger would give consumers a wider variety of store choices and faster delivery options. Instacart customers would gain access to 50,000 more stores, while a single membership fee would cover both DashPass and Instacart+. Local businesses are expected to receive more orders through the combined platform.
Technology and Network Integration
Grocers and retailers of every size would gain access to DoorDash's delivery network and Instacart's grocery and fulfillment technology, available in both apps and on stores' own websites, along with the advertising and AI tools each company has built.
Leadership Statements
DoorDash CEO Tony Xu said the combination could give stores of every size more tools and unlock the potential of grocery delivery. Instacart CEO Chris Rogers said the deal would offer an even better experience for customers and shoppers.
Timeline and Brand Plans
The transaction is expected to close by the end of 2027 or the first half of 2028. DoorDash plans to keep Instacart's brand and app as mainstays of the combined offering.
