DoorDash Inc. agreed to acquire Instacart for about $17 billion, combining the largest U.S. restaurant-delivery app with the leading grocery-delivery platform in a deal that will test how far antitrust regulators let the on-demand delivery business consolidate.
DoorDash will pay $65 for each share of Maplebear Inc., the company that operates Instacart. The price is about 26% above Instacart’s closing level on Oct. 22, the last trading day before word of a possible sale began to circulate, and roughly 11% above its close the day before the announcement. At least three-quarters of the total will be paid in cash; Instacart holders can choose DoorDash stock for the remainder, with stock capped at 25% of the overall consideration.
A long road to closing
Instacart’s board approved the agreement unanimously, and holders of about 19% of its shares have already committed to vote in favor. The companies don’t expect to complete the transaction until the end of 2027 or the first half of 2028, a timetable that reflects the regulatory review ahead. Beyond the U.S. waiting period under the Hart-Scott-Rodino Act, the deal needs clearance in Canada and Israel.
That review is likely to be the central risk. Third-party delivery apps account for a small slice of total grocery spending, but analysts have warned that a narrower definition of the market, such as online grocery delivery through aggregators or the software grocers license to sell online, would show the two companies with a dominant combined share. Regulators have also been focused on household costs, and delivery fees sit squarely in that debate.
Grocery is the prize
DoorDash started in restaurant delivery and has spent several years adding retailers and regional grocers to its marketplace. Instacart, which went public in 2023, rode a pandemic surge in grocery orders but has since faced stiffer competition from Amazon and Walmart, both of which have expanded same-day delivery of household staples. DoorDash said it plans to keep the Instacart brand, its app and the enterprise technology it sells to grocers.
DoorDash released third-quarter results alongside the deal. Revenue rose to $4.62 billion, and the total value of orders on its marketplace grew 36% from a year earlier to $33.9 billion on 993 million orders. Its shares rose in morning trading after the announcement, while Instacart’s stock held near the offer price, a sign investors see the deal as likely but slow to close.
