DoorDash to acquire Instacart for $17 billion in cash

DoorDash announced on Thursday that it has agreed to acquire Instacart for a total value of $17 billion, or $65 per Instacart share. The deal, approved by both boards, combines DoorDash's restaurant takeout dominance with Instacart's grocery delivery reach. DoorDash will retain Instacart's brand, enterprise technology products, and app, with both operating independently until the deal closes, expected toward the end of 2027 or in the first half of 2028. Instacart currently has a market cap of more than $13 billion, with its stock up 25% year-to-date. DoorDash CEO Tony Hsu stated grocery is one of the hardest things to get right online. The acquisition aims to help grocers build online ordering platforms and advertising businesses using Instacart's technology, while leveraging DoorDash's fulfillment services for lower-cost delivery. Bloomberg previously reported Instacart was in talks with Uber but walked away. This valuation is significantly lower than the $40 billion valuation DoorDash proposed in 2021, a deal abandoned due to antitrust concerns under the Joe Biden administration. The current deal is viewed as more feasible under Donald Trump's administration, which has a less restrictive antitrust stance. The acquisition positions DoorDash to compete directly with Walmart and Amazon, which together hold over 50% of the US online grocery market.