SAN FRANCISCO — DoorDash and Instacart announced a definitive agreement for DoorDash to acquire Instacart on Thursday. The transaction values Instacart at $65.00 per share, representing an equity value of approximately $17 billion.

The $65.00 per share price represents a 26% premium to Instacart's closing price on October 22, 2026. Instacart's board of directors unanimously approved the agreement, and stockholders holding about 19% of Instacart's outstanding shares have agreed to vote in favor of the transaction.

The aggregate transaction consideration will be at least 75% cash. Instacart stockholders may elect to receive cash, DoorDash stock, or a combination of both, subject to proration so that DoorDash stock does not exceed 25% of the aggregate consideration. For each Instacart share, stockholders may elect to receive $65.00 in cash, 0.3372 shares of DoorDash common stock, or a mix of $48.75 in cash and 0.0843 shares of DoorDash common stock.

DoorDash expects to fund the cash portion of the consideration with cash on hand and proceeds from debt financing. The company entered into a financing commitment letter with JPMorgan Chase Bank, N.A. for a 364-day senior unsecured bridge loan facility, though the transaction is not subject to a financing condition. DoorDash is targeting a capital structure that will maintain investment-grade ratings.

"Grocery is one of the hardest things to get right online. Someone has to pick a ripe avocado, find a substitute you'd choose yourself, and get the ice cream to you before it melts," said Tony Xu, co-founder and CEO of DoorDash. "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."

Chris Rogers, CEO of Instacart, stated that the combination would leverage existing strengths. "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."

Following closing, DoorDash is expected to keep Instacart’s brand, enterprise technology products, and app. Until the transaction closes, DoorDash and Instacart will continue to operate as separate and independent companies. The transaction is expected to close in the end of 2027 or the first half of 2028.

The deal is subject to approval by Instacart stockholders, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and other regulatory approvals, including in Canada and Israel. Centerview Partners LLC and J.P. Morgan Securities LLC are acting as financial advisors to DoorDash, with Latham & Watkins LLP serving as legal counsel. Goldman Sachs & Co. LLC is acting as financial advisor to Instacart, with Cravath, Swaine & Moore LLP and Cooley LLP serving as legal counsel.

What's New

The company also reported GAAP net income attributable to common stockholders of $466 million and Adjusted EBITDA of $1,060 million for the same period.

DoorDash sees a multi-year path to $500 million or more of annual synergies from the acquisition, net of investments. The company expects to invest more than 100% of total synergies in the first year after close.

Why It Matters

Instacart previously agreed to a $60 million settlement with the Federal Trade Commission in December 2025 over allegations including misleading advertising for free delivery and mandatory service fees up to 15%. The company also said it would wind down its Caper Cart smart shopping-cart business by the end of the second quarter of 2027, expecting related pre-tax charges of $55 million to $80 million.