DoorDash has agreed to acquire grocery delivery platform Instacart in a deal valued at approximately $17 billion, bringing together two major U.S. delivery services and their growing advertising businesses. The transaction will combine DoorDash’s restaurant and local commerce delivery network with Instacart’s grocery technology, retailer partnerships and retail media operations.
Under the definitive agreement, Instacart shareholders will receive $65 per share, representing a 26% premium to the company’s closing stock price on October 22, before reports of a potential acquisition emerged. The transaction will be funded through a combination of cash and DoorDash shares, with cash accounting for at least 75% of the total consideration. Instacart’s board has unanimously approved the agreement, which is expected to close in late 2027 or the first half of 2028, subject to shareholder and regulatory approvals.
The acquisition would expand DoorDash’s presence in grocery delivery while combining two businesses with different consumer purchasing patterns. DoorDash primarily serves restaurant orders and smaller, immediate purchases, while Instacart focuses on larger grocery baskets and recurring household shopping. In the third quarter of 2026, DoorDash processed 993 million orders worth $33.9 billion in gross order value, compared with Instacart’s 91.4 million orders and $10.5 billion in gross transaction value.
Beyond delivery services, the transaction would bring together two retail media businesses that generate advertising revenue from brands seeking to reach consumers during shopping and purchasing activities. DoorDash previously disclosed that its advertising business surpassed $1 billion in annualized revenue in 2024, while Instacart reported more than $300 million in advertising revenue during the third quarter of 2026. The combination would give advertisers access to a broader range of shopping occasions, including restaurant orders, grocery purchases and other local commerce transactions.
Instacart operates an advertising platform that allows consumer brands to promote products across its marketplace and participating retailers’ digital storefronts. DoorDash has developed similar advertising capabilities across its delivery platform, enabling merchants and brands to reach customers through sponsored listings and other placements. By combining these operations, the companies could expand their advertising inventory and use transaction data from different purchasing categories to support campaign targeting and measurement.
DoorDash also plans to integrate Instacart’s enterprise technology with its delivery infrastructure, allowing retailers to use both companies’ fulfillment and commerce tools. Instacart currently partners with more than 2,200 retail banners representing nearly 100,000 stores. According to the companies, Instacart customers could gain access to more than 50,000 additional stores through DoorDash’s network following the acquisition. DoorDash also expects to maintain the Instacart brand, application and enterprise products after the transaction closes.
The companies have outlined plans to combine their membership offerings, allowing DashPass and Instacart+ subscribers to access both services through a single membership fee. DoorDash estimates the arrangement could save subscribers approximately $100 million annually in membership costs, although the companies have not announced pricing or implementation details.
The proposed acquisition follows DoorDash’s expansion through previous transactions, including its purchases of Wolt, Deliveroo and SevenRooms. It also reflects consolidation across delivery and commerce technology as platforms seek to expand their services beyond transactions into advertising, data and retailer software.
However, the agreement remains subject to regulatory review, including competition approvals in the United States, Canada and Israel. The combination of two major delivery platforms could attract scrutiny over competition in grocery delivery, retailer relationships and consumer pricing. Until the transaction closes, DoorDash and Instacart will continue operating independently.
For advertisers and retailers, the proposed deal could create a larger retail media network spanning grocery, restaurant and local commerce purchases. Its eventual impact on advertising products, campaign management and retailer partnerships will depend on the integration strategy and regulatory conditions attached to the transaction.
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