DoorDash has struck a DoorDash Instacart deal worth about $17 billion, agreeing Thursday to pay $65 a share in cash and stock. Both brands, apps, and Instacart’s enterprise technology would stay intact, with closing aimed at the end of 2027 or the first half of 2028. For advertisers, the issue is who owns grocer tools for orders, fulfillment, and advertising businesses.
Key Takeaways
- DoorDash will pay $65 a share, about $17 billion, for Instacart.
- Closing is aimed at the end of 2027 or the first half of 2028.
- Both brands, apps, and enterprise products are set to stay separate.
- An advocacy group says the deal would control nearly 60% of third-party grocery delivery.
Cash, Stock, and Separate Apps
DoorDash will pay $65 per share. The price is a 26% premium to Instacart’s $51.68 close on October 22, before The Information first reported sale talks, Forbes reported. At least 75% of the deal will be cash, and shareholders may elect cash, DoorDash stock, or both.
Both boards have approved. Instacart shareholders and regulators still must sign off. Until closing, the brands will operate as separate companies, TechCrunch reported. After the deal, DoorDash says it will preserve Instacart’s brand, enterprise technology products, and app.
Instacart’s market cap was more than $13 billion, and the stock was up 25% year to date.
Why Grocery Delivery Is the Prize
CNN reported Instacart went public in 2023 after a pandemic-era boom and has struggled to maintain momentum against Uber, Amazon, and Walmart. Amazon’s same-day grocery service now totals 2,300 locations. Walmart offers 30-minute delivery in some places. Uber recently inked a Costco deal.
Uber has also bought delivery rivals, including Postmates and Delivery Hero. DoorDash has expanded beyond restaurant delivery, with partnerships including Home Depot and Sephora. The company said the combination “will offer grocers and retailers of every size DoorDash’s delivery network and Instacart’s grocery and fulfillment technology.”
The Verge reported Instacart users would gain access to more than 50,000 additional stores. The companies said not buying both DashPass and Instacart+ could save customers an “estimated $100 million per year on membership fees alone,” CNN reported.
Grocery is one of the hardest things to get right online.
DoorDash CEO Tony Xu said that in the announcement, adding that together the companies “could give stores of every size more of those tools and unlock the potential of grocery delivery.” Instacart CEO Chris Rogers said the combination can “create new opportunities for our retail and brand partners.”
Advertising Stakes in the DoorDash Instacart Deal
TechCrunch reported the deal could help more grocers build online ordering platforms and advertising businesses using Instacart’s technology, while DoorDash fulfillment handles more orders and offers lower-cost delivery.
For buyers, the shift is ownership, not a merged media kit. Analysis: one parent could hold Instacart’s brand relationships and DoorDash’s logistics while the apps stay separate. A closed-loop ad-to-order path is a reading of that pitch, not a published figure.
The Verge reported these post-close commitments:
- Local grocers will not be limited by platform exclusivity and will be free to work with either delivery service.
- Instacart shoppers will retain flexibility around working hours and which orders to accept.
- Shoppers can choose DoorDash orders or stick with Instacart shopping.
Antitrust Fight and a Long Review
The American Economic Liberties Project wants regulators to block the deal, saying it would control nearly 60% of the third-party grocery delivery market. Lee Hepner, senior legal counsel at the group, said in a statement, CNN reported:
Instacart and Doordash have spent the better part of a decade bullying main street businesses and denying fair pay and benefits to their combined 9 million workers. This merger represents the next frontier of data-driven abuse, exploiting massive asymmetries of power to squeeze worker compensation on the way in and drain consumer wallets on the way out.
That data charge is advocacy, not a finding, but it puts commerce data into the merger review. The Verge reported DoorDash said the biggest online retailers and grocers are building delivery fleets, warehouses, membership programs, and AI shopping assistants, and that a grocer or retailer on thin margins “cannot build all of that alone.” DoorDash also said that “with AI, the playing field risks being tilted even further away from local commerce.”
Forbes reported DoorDash expects to close by the end of 2027 or during the first half of 2028, after Instacart shareholders approve. The Verge reported that window subject to regulatory approvals and other closing conditions. TechCrunch reported a close toward the end of 2027 or in the first half of 2028, without tying that line to approvals.
Forbes also reported that DoorDash moved its earnings call to Thursday. Marketplace gross order value was $33.9 billion, up 36% year over year. The company had agreed to a $131.5 million settlement with New York City for underpaying delivery workers.
How the Price Compares
Recent delivery transactions, using only figures in this coverage:
| Transaction | Value | Timing |
|---|---|---|
| DoorDash–Instacart | $17 billion | Announced Thursday; close aimed at end of 2027 or first half of 2028 |
| Uber–Delivery Hero | $14.8 billion | This summer |
| DoorDash–Deliveroo | $3.9 billion | 2025 |
| Uber–Postmates | $2.65 billion | 2020 |
| Wonder–Grubhub U.S. | $650 million | 2025 |
| DoorDash–Grubhub campus dining | $300 million | September |
If regulators block the deal, grocery advertisers keep two independent platforms. If it closes, they get one owner and two apps, with Instacart’s technology pitched at grocers’ ordering and advertising businesses. Media plans should not assume a single buying point before 2028.
