DoorDash to acquire Instacart for $17 billion

DoorDash will pay $17 billion to purchase Instacart, a deal announced Thursday that merges the two leading US food and grocery delivery platforms. The transaction is valued at $17 billion and will allow DoorDash users to order groceries through its existing delivery network.

The merger creates a single platform with access to nearly 150,000 stores. Instacart currently operates with about 100,000 stores, while the deal grants its customers access to more than 50,000 additional locations on the DoorDash network. Membership structures will also change. DashPass and Instacart+ subscribers will pay one combined fee instead of maintaining two separate subscriptions.

Instacart CEO Chris Rogers stated that the partnership allows the company to expand its reach. “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,” Rogers said. DoorDash plans to retain the Instacart brand and its underlying technology. Both companies will operate independently until the transaction officially closes.

The move continues a trend of consolidation in the delivery sector. DoorDash acquired the UK-based Deliveroo last year. Uber currently owns Postmates, while Delivery Hero holds other major assets. Bloomberg data indicates that DoorDash held approximately two-thirds of US food delivery volume in 2024. Despite its market share, DoorDash stock has fallen by roughly one-third over the past year due to rising operational costs.

Instacart’s stock has remained flat for two years. The company saw its highest growth during the pandemic but now faces competition from Amazon and Walmart. The merger aims to reduce corporate headcount and split expenses. However, consumer satisfaction with delivery fees has dropped. Rising fuel costs have led to new surcharges, prompting complaints about high prices. Last month, DoorDash settled with New York City regulators for $131.5 million over unpaid tips to workers.

DoorDash shares rose more than 9 percent in pre-market trading on the news. The company admitted to past payment errors in a statement regarding the New York settlement. “Simply put, we screwed up,” the San Francisco-based firm said. “Our mistakes meant some Dashers were underpaid or paid late. While these mistakes weren’t intentional, that doesn’t make them okay.” The deal was first reported by The Information and The Wall Street Journal.