DoorDash strikes $17 billion deal for US rival Instacart in grocery delivery bet
CART•DoorDash agreed to buy Instacart in a deal valued at about $17 billion, offering shareholders $65 per share, with at least 75% of the consideration in cash. The deal is expected to close at the end of 2027 or in the first half of 2028, pending regulatory approval.
1. Deal terms
DoorDash said it would buy Instacart, its biggest deal to date, as it expands beyond restaurant delivery into groceries and other retail categories. Instacart shareholders will be able to elect cash, DoorDash stock or a combination, with at least 75% of the consideration in cash. The $65-per-share offer represents a premium of about 26% to Instacart’s October 22 closing price.
2. Approval and timing
The transaction is expected to close at the end of 2027 or in the first half of 2028. Analysts cited regulatory approval as the main risk and said the long closing window points to an extended antitrust review. New York City’s Department of Consumer and Worker Protection called a potential merger part of a “troubling trend” of corporate consolidation.
3. Fees and operations
Instacart would pay DoorDash a $650 million termination fee, while DoorDash would owe $1.25 billion if the deal ends under certain circumstances. DoorDash plans to retain Instacart’s brand and app, combine the companies’ membership programs and not require grocers to use its delivery services exclusively.
