DoorDash agrees to buy Instacart for $17 billion

DoorDash and Instacart announced an acquisition agreement on 29 October 2026, valuing Instacart at $17 billion. The transaction has not closed, and Instacart says the companies will remain separate and independent until it does.

DoorDash says customers paying $9.99 a month for each of DashPass and Instacart+ would pay one membership fee instead of two if the acquisition closes. Those subscriptions provide free delivery on most orders and other benefits.

DoorDash also promises Instacart customers access to 50,000 additional stores on its platform if the acquisition closes.

DoorDash’s grocery expansion

The agreement follows DoorDash’s expansion into groceries, which began in 2020 amid increased pandemic-era demand. Its 2022 partnership with Kroger initially covered only flowers, sushi and prepared meals at a limited number of stores. The partnership expanded in fall 2025; DoorDash now lists the full inventory of all 2,700 US Kroger stores. It added Costco delivery in September 2026.

Market research company Consumer Edge’s figures show DoorDash gaining a larger share of spending on US delivery platforms while Instacart’s share declined.

The companies say the acquisition would combine DoorDash’s global reach and delivery logistics with Instacart’s grocery technology and retailer relationships. DoorDash co-founder and CEO Tony Xu says that combination could help local grocers compete with larger retailers through better technology, faster delivery and new ways to fulfill orders.

What the companies propose for shoppers and grocers

DoorDash says Instacart’s brand and app would remain, and its 600,000 shoppers—independent contractors who fulfill orders—could continue working as before. Grocers would still be able to choose either delivery platform.

In his shopper notice, Instacart CEO Chris Rogers said there were no immediate changes to how shoppers accept or deliver orders. He said the combination could give shoppers more orders closer to them.

The effects on delivery drivers remain unclear. Antitrust attorney Ethan Litwin, a partner at New York-based Shinder Cantor Lerner, warned that workers could have fewer options because the companies are 2 of the 3 major buyers of shopper labor in many markets.

Analysis

Concerns about prices and grocers’ technology

The Associated Press says reduced delivery competition could raise consumer prices and leave grocers fewer partners to negotiate with. Randall Sargent, a grocery and retail partner at consulting firm Oliver Wyman, said consolidation generally tends to be worse for consumers.

Litwin also warned about DoorDash controlling Instacart’s technology, which powers many grocers’ online storefronts. He said that control could let DoorDash exclude rivals or monitor competitors’ prices and discounts in real time, potentially making it easier for companies to coordinate prices.

Approvals and the closing timetable

AP says completion is expected by the end of 2027 or in early 2028 if Instacart shareholders and government regulators approve the acquisition. Instacart’s October 29 shopper notice gives a broader window: the end of 2027 or the first half of 2028, rather than AP’s early-2028 wording.

Instacart lists the expiration or termination of the US Hart–Scott–Rodino antitrust waiting period and any required clearances under Canadian and Israeli competition laws among the conditions for completion.

The companies warn that regulatory approvals could be delayed or come with conditions that reduce the deal’s expected benefits. They also warn that the acquisition might not be completed.

DoorDash plans to include its shares in the payment to Instacart shareholders. The companies warn that proportional allocation of payment options could leave shareholders receiving a different form of payment from the one they selected.

DoorDash next plans to file a Form S-4 registration statement with the US Securities and Exchange Commission to register the shares it would issue. The filing would include Instacart’s proxy statement, its shareholder voting document, and DoorDash’s prospectus. After the securities regulator declares the registration effective, the final document would be mailed to Instacart shareholders for the vote.