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DoorDash is acquiring Instacart for $17 billion
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The deal could help DoorDash’s grocery business compete against Amazon and Walmart.
The deal could help DoorDash’s grocery business compete against Amazon and Walmart.
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DoorDash has announced that it’s buying Instacart in a deal valued at approximately $17 billion. The acquisition will give DoorDash a bigger presence in online grocery delivery thanks to Instacart’s established grocery marketplace and retailer partnerships, with Instacart CEO Chris Rogers saying the deal will make “online grocery more seamless and affordable” for millions of households.
DoorDash says the acquisition will give Instacart users acces to more than 50,000 additional stores, and allow DashPass and Instacart Plus members to “pay one membership fee instead of two.” The deal is expected to close “in the end of 2027 or the first half of 2028,” subject to regulatory approvals and other closing conditions. When finalized, DoorDash says it will preserve Instacart’s brand, enterprise technology products, and app, so the services will remain separate instead of being merged into a single platform.
In its post-close commitments, DoorDash said local grocers won’t be limited by platform exclusivity, and will be free to work with either delivery service. Instacart shoppers will also retain flexibility around their working hours and which orders to accept, and will be able to choose whether to take on DoorDash orders or just stick with shopping for Instacart.
DoorDash, which started as a restaurant courier service, already has its own grocery delivery business, but that faces ongoing competition from Instacart, Uber, Walmart, and Amazon. DoorDash is also incentivized to diversify further because its rivals have been stepping into the food delivery territory it’s best known for, with Uber acquiring Postmates and Delivery Hero.