Instacart

Grocery Delivery · Food Delivery · E-Commerce

Acquisition

DoorDash to acquire Instacart for $17B, forming delivery giant

The deal consolidates grocery delivery just as Amazon and Walmart intensify pressure on standalone platforms.

• DoorDash agreed to acquire Instacart in a cash-and-stock deal valuing it at $65 per share, an equity value of about $17 billion, with Instacart's board unanimously approving the agreement.
• Instacart runs a grocery delivery marketplace covering nearly 100,000 stores; the tie-up with DoorDash adds access to over 50,000 more retailers on top of that.
• At least 75% of consideration is cash, with shareholders able to elect cash, DoorDash stock, or a mix, subject to proration capping stock at 25% of total consideration.
• DashPass and Instacart+ subscribers will merge into a single membership fee instead of paying for both services separately.
• Instacart posted its best quarter as a public company just as the deal was announced: Q3 GTV hit $10.5 billion (+15% YoY) with $147 million in net income.
• DoorDash previously explored buying Instacart in 2021 at a reported valuation of $40-50 billion before talks collapsed over regulatory concerns; today's $17 billion price reflects Instacart's slower growth since its 2023 IPO.
• The $65 offer represents a 26% premium to Instacart's close on October 22, before takeover speculation first surfaced and pushed its shares higher.
• The merger caps a wave of delivery-sector consolidation as companies chase grocery and retail growth to offset a maturing restaurant-delivery market and intensifying competition from Amazon and Walmart.