The key facts

  • DoorDash to acquire Instacart for $17 billion, at $65 per share — a 26% premium to the October 22 closing price
  • The deal will close by the end of 2027 or in the first half of 2028; the Instacart brand, app, and technology will be retained
  • Instacart previously held talks with Uber but, according to Bloomberg, abandoned them; antitrust questions are possible

Deal terms

On October 29, DoorDash announced it had agreed to acquire Instacart for $17 billion — $65 per share, 26% above Instacart's closing price on October 22, before the first reports of a possible merger emerged. The deal has been approved by the boards of directors of both companies and will be paid at least 75% in cash. This is the largest acquisition in DoorDash's history. The deal terms are described in DoorDash's press release, which is covered by TechCrunch and BBC News.

What will change for the companies and stores

Until the deal closes, both companies will continue to operate as separate and independent entities; DoorDash will retain the Instacart brand, app, and enterprise technology products. According to the BBC, Instacart shoppers will gain access to 150,000 stores instead of the current 100,000, and DoorDash will expand beyond restaurants into retail. DoorDash expects grocery stores to be able to use Instacart's technology to develop their own online platforms and advertising businesses, while DoorDash's fulfillment services will help them process more online orders and make delivery cheaper.

Context and risks

Bloomberg previously reported that Instacart had been in talks to sell to Uber, but abandoned them; TechCrunch suggests the company decided to sell at an attractive price amid intensifying competition — its market capitalization exceeds $13 billion, and its shares are up 25% since the beginning of the year. According to a Reuters report cited by the BBC, the merger could raise questions from antitrust regulators. The New York City Department of Consumer and Worker Protection, which last month reached an agreement with DoorDash to pay $131.5 million over allegations of underpaying couriers, said the deal «continues an alarming trend of megacorporation consolidation» and pledged to fully protect the rights of delivery workers regardless of whether the merger goes through.