The deal combines DoorDash’s delivery network with Instacart’s grocery technology and retailer partnerships, with closure expected by late 2027 or the first half of 2028, subject to regulatory and shareholder approvals
DoorDash has agreed to acquire Instacart for an equity value of approximately USD 17 billion, combining its delivery network with Instacart’s grocery fulfilment technology and retailer relationships. Announced on 29 October 2026, the transaction values Instacart at USD 65 per share, a 26 per cent premium to its closing price on 22 October, before media reports about a possible deal.
At least 75 per cent of the consideration will be paid in cash, with Instacart shareholders able to elect cash, DoorDash shares or a combination of both, subject to proration and a cap limiting the stock component to 25 per cent of the total consideration. Instacart’s board has unanimously approved the agreement. The transaction is expected to close by the end of 2027 or in the first half of 2028, subject to shareholder and regulatory approvals.
The proposed combination brings together DoorDash’s delivery infrastructure and Instacart’s grocery fulfilment, enterprise technology and advertising capabilities. The companies plan to make these services available to grocery retailers and other local businesses through their apps and retailers’ own websites, enabling merchants to use their ordering and delivery systems without having to build the full infrastructure independently.
DoorDash said Instacart customers could gain access to more than 50,000 additional stores, in addition to the nearly 100,000 stores already available on Instacart’s platform. The companies also plan to allow DashPass and Instacart+ members to access both membership programmes for a single fee. DoorDash estimates this arrangement could save customers approximately USD 100 million annually in membership fees.
“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. Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery. It’s still early innings, but we know that when more people shop local, more dollars stay local,” Xu added.
The acquisition comes as delivery platforms expand beyond their core businesses to offer grocery and other retail services. For retailers, the proposed combination could widen access to online ordering, fulfilment and retail media services. DoorDash has said it will keep its platform open to grocery retailers, allowing them to work with other delivery providers, while Instacart shoppers would retain the flexibility to choose their working hours and the orders they accept.
Instacart chief executive Chris Rogers said the combination would bring together the company’s grocery technology and retailer relationships with DoorDash’s consumer reach and logistics capabilities. “Together, we can accelerate innovation across the grocery industry and make online grocery more seamless and affordable for the millions of households we serve,” Rogers said.
DoorDash plans to fund the cash portion of the acquisition through cash on hand and debt financing. It has secured a commitment from JPMorgan Chase Bank for a 364-day senior unsecured bridge loan facility. The company said the transaction was not subject to a financing condition and that it was targeting a capital structure consistent with investment-grade credit ratings.
The transaction remains subject to approval by Instacart shareholders, US antitrust procedures, regulatory clearances in other jurisdictions, including Canada and Israel, and other customary closing conditions. Shareholders representing approximately 19 per cent of Instacart’s outstanding shares have agreed to vote in favour of the deal. Both companies will continue to operate independently until the transaction closes.
DoorDash Hyderabad Hub
Separately, DoorDash is expanding its presence in India through a global technology and operations hub in Hyderabad, as per a previous company statement. The centre is expected to create 3,000 jobs over the next two years, beginning with an initial workforce of 500 professionals. The development adds to the company’s existing technology operations in Pune and does not, by itself, indicate an entry into India’s consumer-facing food delivery market.
The company is partnering with managed office provider Table Space for its initial Hyderabad facility. Operations at the initial office were expected to begin in October 2026, while a larger facility in Hitec City was planned for April 2027.
The Hyderabad hub will initially support customer service and general and administrative functions for DoorDash’s international operations. It is expected to become the company’s third global customer support and operations service centre, alongside facilities in Tempe, Arizona, and Mexico City. The expansion places DoorDash among multinational companies building teams in India to support operations across their international markets.
Instacart, whose registered corporate name is Maplebear, partners with more than 2,200 retail banners representing nearly 100,000 stores. DoorDash operates in more than 40 countries through brands including DoorDash, Deliveroo and Wolt.
