DoorDash Strikes $17 Billion Deal to Buy Instacart

DoorDash said on Thursday it will buy rival Instacart in a deal valued at about $17 billion, one of the largest takeovers in app delivery. The agreement values Instacart at $65 a share in cash and stock, The Wall Street Journal reported, an 11 percent premium to its Wednesday close of $58.42 and about 26 percent above its October 22 close of $51.68, before sale reports.

Instacart, whose corporate name is Maplebear, runs online grocery shopping and home delivery from supermarkets and other retailers. DoorDash built its business on restaurant delivery and already delivers groceries for chains such as Kroger, Safeway and Aldi. DoorDash said it expects to keep the Instacart brand, its app and its enterprise technology products after the deal closes, the Journal reported.

The terms, and a long wait to close

Instacart shareholders can choose cash, DoorDash stock or a mix, with at least 75 percent paid in cash, the Journal reported. DoorDash plans to fund the cash share from money on hand and new debt, with a bridge loan committed by JPMorgan Chase, and said it aims to keep its investment grade credit ratings.

The deal is not expected to close until late 2027 or early 2028, the Journal reported, leaving regulators time to review the tie up. DoorDash has a market value of about $73 billion and its shares have fallen about 25 percent this year, Reuters reported. Instacart went public in 2023 and was worth about $13 billion before the Journal reported the advanced talks on Monday.

Shares jump, and DoorDash reports earnings the same morning

Instacart shares rose 4.8 percent to $61.25 in premarket trading on Thursday before trading was halted, and DoorDash shares rose 9.7 percent to $185.96, the Journal reported. Instacart stock had already climbed nearly 30 percent this year and hit a record $62 on Monday, Reuters reported.

"Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery," DoorDash cofounder and chief executive Tony Xu said in a statement carried by MarketWatch. "It's still early innings, but we know that when more people shop local, more dollars stay local."

DoorDash also moved its third quarter earnings report up to Thursday morning, and said adjusted EBITDA rose 41 percent to $1.06 billion, on revenue up 34 percent to $4.6 billion, MarketWatch reported.

A week that moved fast

The sale came together in days, at least in public. The Information reported on Friday, October 23 that Instacart was exploring a sale and had held early talks with Uber and DoorDash. On Monday the Journal reported advanced talks, and by Thursday morning the deal was announced. In a filing on Monday, Instacart said it would wind down Caper Cart, its smart shopping cart business, by the end of the second quarter of 2027, with expected charges of $55 million to $80 million before tax, Reuters reported.

Why grocery, and why now

Restaurant delivery growth has slowed since the pandemic peaks, and delivery companies face rising costs and closer scrutiny of how gig workers are treated, Reuters reported. That pressure has set off a round of deals: DoorDash bought Wolt and Deliveroo in 2025, Uber struck a $15 billion deal for Delivery Hero this year, and Just Eat Takeaway bought Grubhub for $7.3 billion. Grocery delivery is still growing, helped by high gas prices during disruptions linked to the war in Iran, Reuters reported. Buying Instacart gives DoorDash the largest grocery network in the business in one step.