DoorDash will buy Instacart for $17bn and take over its grocery ad business

DoorDash agreed on 29 October 2026 to buy Instacart for about $17bn in equity value, or $65 a share. Instacart also sells ads to brands through Instacart Ads. The joint statement filed with the SEC says the deal should close at the end of 2027 or in the first half of 2028.

Instacart’s ad tools would sit next to DoorDash’s

The companies say the combined business will offer grocers DoorDash’s delivery network and Instacart’s grocery technology, plus the ad and AI tools each has built. They say more grocers could use Instacart software to run their own websites and retail media networks, meaning ad sales on their own shop pages. The filing promises brands “a scaled alternative” for reaching shoppers online.

Instacart works with more than 2,200 retail banners and almost 100,000 stores. DoorDash says Instacart users could reach more than 50,000 extra stores after the deal. Instacart has also been building AI tools for its retail partners, such as a white-label shopping assistant.

DoorDash pays a 26% premium over the 22 October price

The $65 price is 26% above Instacart’s closing price on 22 October, the last trading day before media reported the talks. At least 75% will be paid in cash. Instacart’s board backed the deal, and holders of about 19% of its shares have agreed to vote for it. US competition review and approvals in Canada and Israel are still needed.

DoorDash says it will keep the Instacart brand and app. Until closing, the two firms stay separate. DoorDash already owns Wolt and Deliveroo in Europe, and it has handed WPP Media one global media contract.

DoorDash promises no grocery exclusivity

DoorDash says local grocers will stay free to work with any delivery platform. It also says Instacart shoppers can choose whether to take DoorDash orders.

The first saving DoorDash puts a number on is for shoppers: DashPass and Instacart+ members would pay one fee instead of two. The company estimates this would save them about $100m a year.