DoorDash agrees to acquire Instacart in deal valued at about $17 billion

DoorDash has agreed to acquire grocery delivery company Instacart in a deal valued at about $17 billion. The Verge, Reuters and AP each reported DoorDash's announcement of the deal. DoorDash made the announcement itself on Thursday.

The deal is intended to expand DoorDash's grocery delivery business. It is subject to regulatory approvals.

Reported details

According to The Verge, the deal is expected to close at the end of 2027 or in the first half of 2028. Closing also depends on other conditions.

The Verge reported several commitments that DoorDash made:

• Instacart users would gain access to more than 50,000 additional stores.
• DashPass and Instacart Plus members would "pay one membership fee instead of two."
• DoorDash would keep Instacart's brand, app and enterprise technology products. The services would operate separately rather than merge into one platform.
• Local grocers would not be bound by platform exclusivity and could work with either service.
• Instacart shoppers would keep flexibility over their working hours and the orders they accept. They could choose whether to take DoorDash orders.

According to The Verge, DoorDash's existing grocery business competes with Instacart, Uber, Walmart and Amazon. The Verge also reported that Uber has expanded in food delivery through acquisitions.

The Verge reported that The Information had earlier said Instacart was in talks with Uber and DoorDash about a potential sale. The Verge also reported that The Wall Street Journal said on Monday that DoorDash was in advanced talks with Instacart.

What each side says

DoorDash said that larger online retailers and grocers are building their own delivery fleets, warehouses, membership programmes and AI shopping assistants. The Verge quoted a DoorDash statement as saying: "A grocer or retailer running on thin margins cannot build all of that alone, and with AI, the playing field risks being tilted even further away from local commerce."

The Verge quoted DoorDash CEO Tony Xu as saying in the announcement: "Grocery is one of the hardest things to get right online." He added: "Instacart has spent years learning to do that well for grocers, while DoorDash has built a delivery network and technology that local stores rely on every day. Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery."

According to The Verge, Instacart CEO Chris Rogers said the deal would make "online grocery more seamless and affordable" for millions of households.

What the reports do not include

The reports reviewed by Vocemundi do not describe the deal structure, the per-share price, any premium or the financing. They do not say which regulators must approve the deal. They do not say whether Instacart's board or shareholders have approved it. They do not include responses from Uber, other competitors, regulators, retailers or Instacart shoppers. They do not describe leadership or workforce plans. The Reuters and AP reports reviewed were summaries, so most details come only from The Verge.

Analysis

The deal would combine two companies that currently compete in grocery delivery. That makes regulatory review a central question, and the long expected timeline leaves room for scrutiny. DoorDash's pledges on non-exclusivity, separate apps and shopper flexibility appear designed to address concerns from grocers and workers, but how regulators will view them is not known. Outcomes could range from approval as proposed, to approval with conditions, to a blocked or abandoned deal. Responses from competitors, retailers and shoppers, not yet included in the reports, may shape the debate. Key financial terms also remain undisclosed in the reports reviewed.

Produced by the Vocemundi newsroom with AI assistance.