DoorDash has announced it is buying Instacart in a deal valued at approximately $17 billion, confirming speculation that had circulated since last week. The acquisition is expected to close at the end of 2027 or in the first half, according to The Verge, and would give DoorDash a larger presence in online grocery delivery through Instacart's marketplace and retailer partnerships.
The announcement follows reports on Monday that DoorDash was in advanced discussions to acquire Instacart and that the deal could value Instacart at about $17 billion. Speculation around a deal began last week, when The Information reported that Instacart was exploring a sale and had held talks with companies including Uber and DoorDash. On Wednesday, Instacart's stock rose about 4 percent in extended trading while DoorDash shares fell less than 1 percent, according to CNBC.
Under the deal, DoorDash says Instacart users will gain access to more than 50,000 additional stores, and DashPass and Instacart Plus members will be able to pay one membership fee instead of two. Instacart chief executive Chris Rogers said the deal will make online grocery more seamless and affordable for millions of households, according to The Verge.
Analysis
Why This Matters
- The deal would consolidate two major app-based delivery platforms, giving DoorDash a much larger foothold in online grocery.
- Instacart customers would gain access to more than 50,000 additional stores, and members of both DashPass and Instacart Plus would pay one membership fee instead of two, according to DoorDash.
- The expected closing window of the end of 2027 or the first half of the following year sets a long timeline before the acquisition is completed.
Background
DoorDash built its business on restaurant food delivery and has been expanding further into the delivery of other goods, while Instacart operates a grocery-focused marketplace connecting shoppers with retailers. The two companies had been discussed as potential partners since The Information reported last week that Instacart was exploring a sale and had held talks with companies including Uber and DoorDash.
Key Perspectives
- DoorDash: says the acquisition will give Instacart users access to more than 50,000 additional stores and allow DashPass and Instacart Plus members to pay one membership fee instead of two.
- Chris Rogers, Instacart chief executive: said the deal will make online grocery more seamless and affordable for millions of households.
What to Watch
- Whether the acquisition closes within the expected window of the end of 2027 or the first half of the following year.
- How memberships and store access are integrated once the deal is completed.
Checked
12 claims in this story checked against 3 sources: 11 supported.
Show each claim
- SupportedDoorDash is acquiring Instacart.The Verge: “DoorDash has announced that it's buying Instacart in a deal valued at approximately $17 billion.”
- SupportedThe deal is worth roughly $17 billion.The Verge: “DoorDash has announced that it's buying Instacart in a deal valued at approximately $17 billion.”
- SupportedThe acquisition was announced Thursday.All Content from Business Insider: “The $17 billion deal is expected to close at the end of 2027 or in the first half of 2028. ... the companies said Thursday.”
- SupportedThe acquisition would give DoorDash a bigger presence in online grocery delivery through Instacart's marketplace and retailer partnerships.The Verge: “The acquisition will give DoorDash a bigger presence in online grocery delivery thanks to Instacart's established grocery marketplace and retailer partnerships”
- Partly supportedThe deal is expected to close at the end of 2027 or in the first half.All Content from Business Insider: “The $17 billion deal is expected to close at the end of 2027 or in the first half of 2028.”
- SupportedThe announcement confirmed speculation that had circulated since last week.The Verge: “Speculation around a deal started circulating last week.”
- SupportedOn Monday, reports said DoorDash was in advanced discussions to acquire Instacart and the deal could value Instacart at about $17 billion.US Top News and Analysis: “On Monday, several outlets reported DoorDash was in advanced discussions to acquire Instacart and that the deal could value Instacart at about $17 billion.”
- SupportedThe Information reported last week that Instacart was exploring a sale and had held talks with Uber and DoorDash.US Top News and Analysis: “Speculation of a deal has swirled since last week, when The Information reported Instacart was exploring a sale and had held talks with companies including Uber and DoorDash.”
- SupportedOn Wednesday, Instacart shares rose about 4% in extended trading while DoorDash shares fell less than 1%.US Top News and Analysis: “Instacart's stock popped about 4% in extended trading on Wednesday, while DoorDash shares fell less than 1%.”
- SupportedDoorDash says the deal will give Instacart users access to more than 50,000 additional stores.The Verge: “DoorDash says the acquisition will give Instacart users acces to more than 50,000 additional stores”
- SupportedDashPass and Instacart Plus members will be able to pay one membership fee instead of two.The Verge: “allow DashPass and Instacart Plus members to "pay one membership fee instead of two."”
- SupportedInstacart CEO Chris Rogers said the deal will make online grocery more seamless and affordable for millions of households.The Verge: “with Instacart CEO Chris Rogers saying the deal will make "online grocery more seamless and affordable" for millions of households.”
