DoorDash strikes $17 billion deal for US rival Instacart in mega grocery delivery bet
CART•DoorDash agreed to buy Instacart in a deal valued at about $17 billion, offering shareholders $65 per share. The deal is expected to close at the end of 2027 or in the first half of 2028, subject to regulatory approval.
1. Deal terms
DoorDash offered Instacart shareholders $65 per share, a premium of about 26% to Instacart’s October 22 closing price. At least 75% of the consideration will be cash; shareholders can elect cash, DoorDash stock or a combination.
2. Strategic plans
DoorDash said the acquisition would expand its reach in groceries and other retail categories. It plans to retain Instacart’s brand and app, combine the companies’ membership programs and not require grocers to use its delivery services exclusively.
3. Regulatory review
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 timeline suggests an extended antitrust review. Instacart would owe DoorDash a $650 million termination fee, while DoorDash would owe $1.25 billion if the deal ends under certain circumstances.
