DoorDash Announces $17 Billion Acquisition of Grocery App Instacart
DoorDash has announced a $17 billion acquisition of grocery delivery platform Instacart, marking its largest deal ever and combining the top restaurant and supermarket delivery apps.
American delivery giant DoorDash has announced a massive $17 billion acquisition of grocery delivery platform Instacart, uniting the dominant restaurant delivery service with the nation's leading supermarket delivery app, according to media reports.
Under the terms of the agreement, Instacart shareholders will receive $65 per share, representing an 11% premium over the stock's closing price on Wednesday. The boards of directors of both companies have already approved the transaction, which is expected to close late next year or in early 2028.
This marks the largest acquisition in DoorDash history, easily eclipsing its $8 billion purchase of Finnish delivery firm Wolt and its $4 billion acquisition of British rival Deliveroo in 2025. DoorDash recently reported completing 993 million orders in the third quarter, a 28% increase year-over-year, with total marketplace gross order value nearing $34 billion and revenue reaching $4.6 billion.
Instacart, which reached a peak valuation of $39 billion during the pandemic, went public in 2023 at an initial price of $30 per share. However, intensifying market competition brought its market capitalization down to $14 billion prior to the deal. By comparison, DoorDash commands a market valuation of $72 billion.
Intensifying Market Competition
The combined company will face fierce competition in the rapidly evolving delivery sector. Major retail giants such as Amazon have aggressively expanded same-day delivery services for perishables to 2,300 cities, while Walmart and Uber continue to capture significant market share. Last year, DoorDash entered the grocery sector by partnering to offer deliveries from approximately 2,700 Kroger-owned stores across the United States.
