US company DoorDash has agreed to buy grocery delivery service Instacart. Both companies announced the definitive agreement on October 29, 2026, valuing the equity at roughly $17 billion.

What is known

According to DoorDash’s official filing with the US securities regulator, the buyer is offering $65 per Instacart share. That is 26% above the closing price on October 22, the last trading day before media reports of a possible deal appeared.

Instacart shareholders will be able to choose the form of payment:

  • $65 in cash per share;
  • 0.3372 DoorDash shares;
  • a mix: $48.75 in cash and 0.0843 DoorDash shares.

The stock portion is capped at 25% of total consideration, so proration is possible. Instacart’s board approved the deal unanimously. According to TechCrunch, DoorDash’s board has approved it as well.

What is planned

According to the companies’ executives, DoorDash will keep Instacart’s brand, app and enterprise technology products. Until the deal closes, the two companies will operate as separate, independent businesses. TechCrunch reports that closing is expected in late 2027 or the first half of 2028.

DoorDash also says members of its DashPass and Instacart+ programs would pay one membership fee instead of two, which it estimates would save them about $100 million a year. DoorDash CEO Tony Xu said that “grocery is one of the hardest things to get right online.” The outlet also quotes Instacart CEO Chris Rogers on the company’s 14 years of growth.

Context

DoorDash has traditionally been strong in restaurant delivery, Instacart in supermarket grocery delivery, and the deal would combine the two. News of the talks reached the press on October 26, when outlets reported “advanced” negotiations. Earlier, according to Bloomberg, Instacart held talks with Uber, but they are no longer active.

The deal still has to clear the necessary approvals. The companies’ public statements do not specify which regulatory clearances it will require.

Sources: DoorDash (filing with the US Securities and Exchange Commission), TechCrunch, Fox Business, BNN Bloomberg.