DoorDash Agrees to Acquire Rival Instacart for Seventeen Billion Dollars

Delivery giant DoorDash agreed to buy grocery service Instacart for $17 billion on Thursday, combining two major on-demand delivery platforms in a deal that aims to expand market reach and retailer partnerships.

The transaction values each Instacart share at $65, according to the companies, and has received approval from the boards of directors at both firms.

The acquisition unites DoorDash's dominant restaurant delivery network with Instacart's extensive grocery marketplace, allowing the combined company to compete more aggressively against major rivals such as Amazon and Walmart.

“Over the last 14 years, Instacart has transformed online grocery by helping retailers of all sizes compete and grow, and joining forces with DoorDash allows us to do even more,” said Instacart chief executive Chris Rogers.

Both brands will continue to operate as separate and independent entities until the transaction is finalized, which is expected toward the end of 2027 or in the first half of 2028.

DoorDash plans to preserve the Instacart brand and integrate its technology products, while also enabling merchants to cross-list offerings across both applications.

“Grocery is one of the hardest things to get right online,” said DoorDash chief executive Tony Xu.

Xu added that the partnership brings together specialized grocery expertise with established logistics capabilities to support local stores of every size.

The announcement arrives shortly after DoorDash reached a $131.5 million settlement with New York City regulators to resolve wage underpayment charges affecting hundreds of thousands of workers.

New York City Mayor Zohran Mamdani criticized the acquisition following the recent labor settlement, warning that corporate consolidation could lead to increased costs and economic inequality.

“Just last month, DoorDash couldn’t seem to find the money to pay their deliveristas — until our administration forced them to give back $131M+ in stolen wages and penalties,” said Mamdani.

Business Insider reported that gig workers might experience changes in order availability, though analytics data indicates average pay rates for delivery workers differ between the platforms.

Bloomberg previously reported that Instacart held discussions with Uber before walking away from those talks to pursue the DoorDash agreement.

Federal regulators must approve the transaction before the companies can officially complete the merger.