Mirror Review
October 30, 2026
DoorDash announced on October 29, 2026, that it has agreed to acquire Instacart in a cash-and-stock transaction with an equity value of approximately $17 billion, as the delivery company seeks to expand its US grocery business.
The DoorDash Instacart acquisition values Instacart at $65 per share, representing a 26% premium to its closing share price on October 22, 2026. The proposed transaction will bring together DoorDash’s delivery network and Instacart’s grocery shopping technology, retailer partnerships, and advertising services.
The companies expect to complete the acquisition in late 2027 or the first half of 2028, subject to shareholder and regulatory approvals.
Key Details of the DoorDash Instacart Acquisition
The DoorDash acquisition of Instacart will involve a combination of cash and DoorDash shares, with at least 75% of the total transaction consideration paid in cash.
Under the agreement, Instacart shareholders can elect to receive $65 in cash, 0.3372 DoorDash shares, or a combination of $48.75 in cash and 0.0843 DoorDash shares for each Instacart share. The final payment will depend on the agreement’s allocation rules, which limit DoorDash stock to 25% of the total transaction consideration.
Instacart’s board of directors has unanimously approved the transaction, while shareholders holding approximately 19% of Instacart’s outstanding shares have agreed to vote in favor of it.
DoorDash expects to finance the cash portion of the acquisition through its existing cash reserves and debt financing.
Why Is DoorDash Buying Instacart?
DoorDash is buying Instacart to expand its grocery delivery operations and strengthen the technology services it provides to retailers.
Founded in 2013, DoorDash initially focused on restaurant delivery before expanding into groceries, convenience stores, and other retail categories. Instacart, founded in 2012, built its business around grocery shopping and delivery before developing online storefronts, advertising services, and retailer technology.
Instacart partners with more than 2,200 retail banners representing nearly 100,000 stores, giving DoorDash an established network of grocery retailers if the acquisition completes.
Explaining the proposed acquisition, DoorDash CEO Tony Xu said in DoorDash’s official acquisition announcement:
“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 DoorDash grocery delivery expansion will combine Instacart’s online shopping and fulfillment technology with DoorDash’s delivery services. Both companies also plan to offer retailers access to advertising tools and artificial intelligence services.
The Instacart acquisition 2026 announcement comes alongside the grocery delivery platform’s latest financial results.
For the third quarter ended September 30, 2026, Instacart reported $1.095 billion in revenue, up 17% year over year, while gross transaction value reached $10.53 billion, an increase of 15%. Instacart also processed 91.4 million orders, up 10%, and recorded net income of $147 million, according to its third-quarter 2026 financial results.
How Will the DoorDash Instacart Deal Affect Customers and Retailers?
The DoorDash Instacart $17 billion deal includes plans to expand shopping options, combine membership benefits, and provide additional delivery services for customers and retailers.
According to DoorDash’s announced plans, Instacart customers could gain access to more than 50,000 additional stores through DoorDash’s network. The companies also intend to combine DashPass and Instacart+ benefits into a single paid membership, allowing subscribers to access both services without paying separate membership fees.
DoorDash estimates that combining the memberships could save customers approximately $100 million annually in membership fees, although the projected savings depend on the acquisition’s completion.
For grocery retailers, DoorDash plans to offer Instacart’s online shopping, advertising, and fulfillment technology alongside its existing delivery services. DoorDash has also committed to allowing retailers to continue working with competing delivery platforms.
DoorDash has committed to allowing Instacart shoppers to choose how much they work and whether to accept DoorDash orders or continue working exclusively through Instacart after the acquisition.
Does the DoorDash Instacart Acquisition Need Regulatory Approval?
The DoorDash Instacart acquisition is subject to US antitrust review under the Hart-Scott-Rodino Antitrust Improvements Act, which requires certain mergers and acquisitions to undergo federal review before completion.
US antitrust authorities may assess how the proposed combination would affect competition in grocery delivery and related services.
DoorDash must also obtain required regulatory approvals in Canada and Israel before completing the transaction.
As of October 30, 2026, the DoorDash Instacart regulatory approval process remains pending, with no final decision announced.
When Will the DoorDash Instacart Acquisition Be Completed?
DoorDash expects to complete the Instacart acquisition in late 2027 or the first half of 2028, subject to shareholder approval, regulatory clearance, and other closing conditions.
Following completion, DoorDash intends to retain Instacart’s brand, app, and enterprise technology products. Until then, both companies will continue operating independently.
The DoorDash Instacart acquisition remains subject to the required approvals before the companies can proceed with their planned combination of grocery delivery and retail technology services.
Gurushanth S Jatti
