DoorDash announces plans to acquire Instacart for $17 billion, combining delivery networks and merging DashPass with Instacart+
Delivery giant DoorDash announced its intention to acquire grocery delivery service Instacart in a massive $17 billion agreement finalized on October 29, 2026. The landmark transaction aims to combine both companies, merging extensive delivery networks, advanced grocery technology, and powerful retail partnerships.
The buyout is designed to help local businesses grow by providing grocers and retailers with access to unified advertising and artificial intelligence tools. According to information published by dexerto, the massive corporate merger is expected to officially close between late 2027 and the first half of 2028.
Under the terms of the agreement, shareholders will receive $65 per share, valuing the grocery shopping platform at approximately $17 billion. While awaiting regulatory approval, both companies will continue operating independently without immediate changes to their respective services.
DoorDash and Instacart subscription merger details
One of the most notable consumer impacts involves the subscription services DashPass and Instacart+, which will eventually merge into a single membership. Customers will pay one combined fee instead of maintaining two separate subscriptions, potentially saving members a collective $100 million annually.
Chief Executive Officer Tony Xu highlighted the operational challenges of the grocery sector during the announcement. Xu noted that grocery delivery is exceptionally difficult, requiring careful item selection like finding a ripe avocado and ensuring ice cream remains frozen upon arrival.
Impact on grocery delivery technology and store access
The acquisition will grant Instacart users access to more than 50,000 additional stores, building upon the nearly 100,000 retail locations already available on the platform. By combining infrastructure, the companies aim to unlock the full potential of online grocery shopping for stores of every size.
DoorDash confirmed that the Instacart brand name, mobile application, and existing technology will remain active, allowing customers to continue placing orders through either platform. Instacart board members have unanimously approved the agreement, backed by investors holding approximately 19 percent of outstanding shares.
Delivery worker opportunities and future operations
Delivery workers will also see expanded earning opportunities following the transaction, gaining the ability to accept orders across both platforms simultaneously. Existing Instacart shoppers will retain the flexibility to choose specific orders and continue working exclusively through the grocery service if preferred.
Both platforms share a core mission to help local businesses succeed in a competitive digital marketplace. The deal successfully combines DoorDash delivery logistics with Instacart fulfillment technology, creating a comprehensive ecosystem for retail partners and consumers alike.
Frequently Asked Questions
How much is the DoorDash acquisition of Instacart worth?
The acquisition agreement values Instacart at approximately $17 billion, with shareholders receiving $65 per share.
What will happen to DashPass and Instacart+ subscriptions?
DashPass and Instacart+ will eventually be combined into a single membership, allowing customers to pay one fee and potentially save $100 million annually.
When is the DoorDash and Instacart deal expected to close?
The transaction is expected to close in late 2027 or the first half of 2028, pending shareholder and regulatory approvals.
Will the Instacart brand and app still exist?
Yes, DoorDash plans to keep the Instacart name, app, and existing technology, allowing customers to continue placing orders as normal.
