DoorDash agrees to buy Instacart for $17 billion in delivery mega-Deal
DoorDash is buying grocery rival Instacart for $17 billion in cash and stock.
The short version
- The massive deal combines two of America's biggest delivery platforms.
- Federal regulators will review the merger over grocery prices and worker competition.
DoorDash just agreed to acquire its grocery delivery rival Instacart for approximately $17 billion, a massive deal that would combine two of the country's largest delivery platforms. The companies announced the agreement on Thursday, October 29, 2026, offering Instacart shareholders $65 per share in cash, DoorDash stock, or a combination of both.
DoorDash has expanded rapidly beyond restaurant deliveries, with its share of U.S. grocery delivery orders climbing from 44% to 59% over five years, while Instacart’s share fell from 26% to 18%, according to market data reported by The Associated Press. The purchase would give DoorDash control of Instacart’s grocery delivery business, retailer partnerships, and technology used by grocery chains to manage online orders.
Federal antitrust regulators will review whether the transaction could substantially reduce competition under the Clayton Act, examining potential effects on grocery prices, consumer choices, and delivery fees. DoorDash defended the acquisition as a way to help smaller grocery stores compete with Walmart, the discount store chain, and Amazon, the online retail giant.
Instacart would retain its name, app, and technology products, while the companies promise access to more than 50,000 additional stores and a combined subscription offering extending benefits across DashPass and Instacart+. Approximately 600,000 independent contractors who shop and deliver orders through Instacart would continue to choose their assignments, though the merger leaves gig workers with one fewer major company competing for their labor.
The deal also comes as the Federal Trade Commission, the federal antitrust watchdog, investigates how delivery companies use personal information to set consumer prices and worker compensation. FTC Chairman Andrew Ferguson said the agency wants to determine whether companies use personal data to calculate the highest prices consumers are willing to pay.
The acquisition still requires the expiration of the federal antitrust waiting period and regulatory approvals in Canada and Israel, with the companies expecting to complete the transaction by late 2027 or early 2028. Check your subscription apps when the paperwork clears.
