DoorDash to Acquire Instacart for $17 Billion in Cash-and-Stock Deal

DoorDash announced Thursday it will acquire rival Instacart for $17 billion, paying $65 per share in cash and stock — a 26% premium to Instacart's closing price before media reports of the talks surfaced. DoorDash shares rose 3% to $177.62, giving it a market value of $75 billion; Instacart fell nearly 2% to above $57 in midday trading, valuing it around $13 billion. The two San Francisco-based delivery rivals said the combination would help local retailers compete with Amazon and Walmart. DoorDash will keep Instacart's brand and app intact and expects the deal to close at the end of 2027 or early 2028. The companies will operate independently until then. The tie-up has already drawn antitrust scrutiny. DoorDash said customers could subscribe to both services through a single account, saving an estimated $100 million annually in membership fees, and gain access to 50,000 additional stores. Separately, DoorDash reported third-quarter total orders rose 28% year over year and gross order value climbed 36% to $33.9 billion.