DoorDash to Buy Instacart in $17 Billion Grocery Delivery Deal

DoorDash will acquire Instacart for $17 billion, uniting two of the most active platforms in retail and grocery delivery.

The deal, announced by DoorDash Inc., still needs approval from regulators and Instacart shareholders. DoorDash plans to finance it with a combination of cash, stock and debt. The acquisition would let DoorDash leverage Instacart's technology and expertise.

DoorDash expects the transaction to close near the end of 2027 or in the first half of 2028, the companies disclosed. Until then, Instacart will continue to operate independently.

Why is DoorDash buying Instacart?

Tony Xu, co-founder and CEO of DoorDash, framed the deal around the difficulty of online grocery.

"Grocery is one of the hardest things to get right online," Xu said in the acquisition announcement. "Someone has to pick a ripe avocado, find a substitute you'd choose yourself, and get the ice cream to you before it melts."

Xu praised Instacart's work with grocers and pointed to what each company brings.

"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," he stated. "Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery. It's still early innings, but we know that when more people shop local, more dollars stay local."

The market backdrop supports the bet. U.S. online grocery sales grew by more than 20% year over year, increasing their share of total grocery spending, according to data tracked by the firm Brick Meets Click.

What happens to the Instacart brand?

DoorDash expects to preserve the Instacart brand, along with its enterprise technology products and its app, after the deal closes.

DoorDash also noted a scale advantage: the deal could make 50,000 additional stores available to Instacart users, adding to the almost 100,000 stores that already participate on Instacart's platform.

Chris Rogers, CEO of Instacart, said the combination extends the company's 14-year track record.

"Over the last 14 years, Instacart has transformed online grocery by helping retailers of all sizes compete and grow, and joining forces with DoorDash allows us to do even more," Rogers said. "When our purpose-built grocery technology and trusted retailer and brand relationships are combined with DoorDash's global consumer reach and logistics capabilities, we can create new opportunities for our retail and brand partners, offer an even better experience for customers and shoppers, and deliver compelling value for our shareholders."

What does this change for grocers and brands?

For now, nothing immediate. Instacart keeps operating on its own until closing. Longer term, grocers and brand partners face a single combined platform with DoorDash's logistics network behind Instacart's grocery technology and retailer relationships, pending regulatory and shareholder sign-off.