DoorDash Plans to Acquire Grocery Delivery Service Instacart in $17B Deal
When the deal is complete, both companies are expected to continue operating separately.
DoorDash, the leading food delivery service in the United States, is set to acquire grocery delivery service Instacart in a $17 billion deal, according to the company's announcement on Thursday. The collaboration between the two companies could potentially streamline grocery deliveries for local stores by combining Instacart's expertise in selecting fresh produce and ice cream, as well as DoorDash's extensive delivery network and technology.
Tony Xu, co-founder and CEO of DoorDash, expressed optimism about the partnership, stating that grocery delivery remains one of the most challenging aspects of online shopping and that the acquisition would empower stores of all sizes with the necessary tools. Notably, both companies will continue to operate under separate platforms, and the Instacart brand will persist.
Customers who are subscribers to DashPass and Instacart Plus will only need to pay a single membership fee for benefits from both platforms. The transaction is not anticipated to finalize until late 2027. In early 2026, the New York City Department of Consumer and Worker Protection accused both DoorDash and its rival, Uber Eats, of underpaying delivery drivers.
In September, DoorDash reached a $131.5 million settlement to address these issues, acknowledging that while the mistakes were not intentional, they were unacceptable.
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