DoorDash strikes $17 billion deal for US rival Instacart in grocery delivery push
DASH•DoorDash said it would buy Instacart in a deal valued at about $17 billion, offering shareholders $65 per share, a 26% premium to the October 22 closing price. The deal is expected to close at the end of 2027 or in the first half of 2028.
1. Deal terms
DoorDash said it would buy Instacart in a deal valued at about $17 billion. It offered Instacart shareholders $65 per share, a premium of about 26% to the stock’s October 22 closing price, before reports of deal talks first emerged.
2. Push into groceries
DoorDash CEO Tony Xu said grocery is one of the hardest things to get right online and that Instacart has spent years learning to serve grocers. Delivery companies are expanding into grocery and retail as the restaurant delivery business matures.
3. Closing and Caper Cart
The transaction is expected to close at the end of 2027 or in the first half of 2028. Instacart said in a regulatory filing that it would wind down its Caper Cart smart shopping-cart business by the end of the second quarter of 2027, with expected related pre-tax charges of $55 million to $80 million.
