DoorDash is buying Instacart for $17 billion in a massive delivery deal
The short version
- DoorDash will pay $65 a share in cash and stock.
- The massive deal unites two of the biggest delivery giants.
- Both companies face heavy competition from Amazon and Walmart.
- The merger is slated to close by early 2028.
Why it matters to you. For your business, a combined delivery giant could mean shifting terms and fees when you use their platforms to reach local customers.
DoorDash just announced it will acquire Instacart for $17 billion, uniting two of the biggest delivery giants under one roof according to CNBC. DoorDash will pay $65 a share in cash and stock, which is an 11% premium to Instacart's closing price on Wednesday.
Shares of DoorDash jumped more than 6% in morning trading following the news, while Instacart traded near the flatline. DoorDash CEO Tony Xu said that grocery is one of the hardest things to get right online. 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 deal is slated to close at the end of 2027 or early 2028. DoorDash expects to retain Instacart's brand, enterprise technology products and app once the deal closes. Acquiring Instacart gives DoorDash a much bigger presence in online grocery delivery.
Both companies have faced increasingly stiff competition from Amazon, the e-commerce giant, and Walmart, the warehouse store chain. Analysts have noted that the potential combination could attract antitrust scrutiny given the companies' market overlap.
