DoorDash to buy Instacart in US$17b deal

DoorDash announced its intention to acquire delivery service Instacart for $17 billion, effectively consolidating the iPhone app-based delivery market to just one dominant player. The $65 per share purchase price represents a 26% premium over Instacart's October 22, 2026 closing price. The deal's total value comes from at least 75% cash, allowing shareholders to select cash or DoorDash shares as payment.

While the acquisition is pending completion, both companies stand to benefit from the merger. Instacart has previously expressed interest in a potential deal with Uber, but DoorDash believes the acquisition will provide consumers with more choice and affordable delivery options. However, consolidation in any industry typically leads to reduced competition, which may negatively impact employees' wages and working conditions.

DoorDash argues that the merger will create more earning opportunities, but regulatory approval and an antitrust review are necessary before the deal can proceed. Currently, Walmart dominates the grocery delivery market, and should the deal succeed, the combined DoorDash and Instacart entity would control approximately 60% of the market.