The companies announced the cash-and-share agreement on Thursday, valuing Instacart, formally Maplebear Inc, at $65 a share. That represents a 26% premium to its closing share price on 22 October, before speculation about a possible sale emerged. The transaction requires shareholder and regulatory approvals and is expected to close in late 2027 or the first half of 2028.
Instacart shareholders will receive at least 75% of the consideration in cash, with DoorDash shares accounting for no more than 25% of the total. Shareholders may elect cash, shares or a combination, subject to adjustments designed to maintain those proportions. DoorDash intends to finance the cash payment through existing funds and borrowing.
The acquisition would give DoorDash access to Instacart’s extensive supermarket relationships, shopping technology and grocery customers while expanding Instacart’s reach through DoorDash’s delivery operations. Both companies intend to retain their existing brands and consumer applications after completion, rather than immediately replacing them with a single service.
DoorDash chief executive Tony Xu identified Instacart’s expertise in working with grocers as an important attraction, reflecting the operational differences between delivering prepared meals and assembling supermarket orders. Grocery fulfilment involves inventory availability, substitutions, variable basket sizes and close coordination with stores, presenting challenges beyond restaurant delivery.
Instacart works with more than 2,200 retail banners representing nearly 100,000 stores. Its business includes a consumer ordering marketplace and technology supplied to retailers, providing services that extend beyond arranging deliveries. DoorDash operates across more than 40 countries through brands including DoorDash, Wolt and Deliveroo.
The proposed combination also raises questions for supermarkets that use Instacart technology while maintaining relationships with competing delivery providers. Retailers rely on such services for online storefronts, advertising and order management, not solely for drivers. DoorDash has said Instacart’s enterprise products will remain available after the acquisition, an important distinction for merchants seeking to preserve their own customer relationships and digital sales channels while using external fulfilment networks.
The companies envisage offering customers access to a wider selection of merchants. Their plans also include membership arrangements linking DashPass and Instacart+, potentially allowing subscribers to obtain benefits across restaurant and grocery orders under one fee. Details of implementation will depend on completion of the acquisition.
The agreement follows growing competition for grocery spending from Walmart, Amazon and Uber, alongside supermarkets investing in their own online ordering and delivery capabilities. DoorDash has already expanded beyond takeaway meals into groceries, convenience products and other retail categories, putting it in direct competition with parts of Instacart’s business.
That overlap is likely to draw attention from competition authorities. Regulators could examine whether combining the platforms would affect delivery fees, retailer bargaining power, access to customers and choices available to consumers. Competition from supermarket chains and other technology platforms will also form part of the market assessment. No regulatory decision has been announced.
Instacart’s board unanimously approved the agreement, while shareholders controlling approximately 19% of its outstanding shares have committed to supporting the transaction. Closing conditions include approval under US antitrust rules and relevant clearances in Canada and Israel. The agreement is not conditional on DoorDash securing financing.
DoorDash has obtained a commitment from JPMorgan Chase Bank for a 364-day senior unsecured bridge loan facility to support the purchase. The arrangement provides a financing backstop while the company determines its eventual funding structure. The companies have not announced a definitive timetable for integrating their operations.
The announcement coincided with DoorDash’s third-quarter financial results. The company reported revenue of approximately $4.62 billion and adjusted earnings before interest, tax, depreciation and amortisation of about $1.06 billion, underscoring the scale of its existing operations as it prepares for the purchase.
Shares in both companies advanced in US premarket trading following the announcement, reversing some of the uncertainty that had accompanied discussions earlier in the week. Instacart had also attracted interest from Uber during its exploration of strategic options, before negotiations centred on DoorDash.
Separately, Instacart plans to discontinue its Caper Cart smart shopping trolley business by the end of the second quarter of 2027. The company expects pretax charges of between $55 million and $80 million associated with that decision, which concerns one of its existing retail technology products.
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