DoorDash has agreed to acquire rival grocery delivery platform Instacart in a deal valued at approximately $17 billion, in a move that will reshape the US online food and grocery delivery market.
The acquisition, announced on Thursday, will bring Instacart under DoorDash’s ownership, ending its run as an independent publicly traded company following its stock market debut in 2023.
The deal comes as competition intensifies among delivery platforms and retail giants, including Uber, Amazon and Walmart, which are investing heavily in faster grocery delivery and expanding their digital commerce offerings.
Instacart, which experienced significant growth during the COVID-19 pandemic as consumers increasingly embraced online grocery shopping, has struggled to sustain its momentum amid growing competition.
Combining the two businesses is expected to strengthen DoorDash’s position in the grocery delivery market and give it greater capacity to compete with established retail and technology companies.
Amazon, for instance, continues to expand its same-day grocery delivery service, which now covers 2,300 locations, while Walmart has introduced 30-minute delivery in selected markets. Uber has also strengthened its grocery business through partnerships, including a recent agreement with Costco.
In a statement, DoorDash said the combined business would offer grocery stores and retailers of all sizes access to its delivery network and Instacart’s grocery technology and fulfilment capabilities.
DoorDash has increasingly moved beyond its traditional restaurant delivery business, expanding into other consumer services and retail partnerships. Its collaborations with companies such as Home Depot and Sephora, alongside its restaurant reservation services, reflect efforts to build a broader on-demand commerce platform.
The acquisition will further strengthen that strategy by giving DoorDash access to Instacart’s established grocery relationships and technology.
Tony Xu, DoorDash co-founder and chief executive officer, said grocery delivery required specialised capabilities, including product selection, substitutions and maintaining food quality during transportation.
He noted that Instacart had spent years developing expertise in grocery fulfilment, while DoorDash had built a delivery network and technology infrastructure used by local businesses.
The transaction combines cash and stock, with DoorDash offering $65 per Instacart share. The offer represents a premium of approximately 25 per cent over Instacart’s October 22 closing price, following reports that the grocery delivery company was considering a sale.
The companies also highlighted potential savings for consumers, particularly through the integration of their subscription programmes, DashPass and Instacart+.
According to the companies, eliminating the need for customers to maintain separate memberships could generate estimated annual savings of $100 million in subscription fees.
However, the proposed acquisition is already facing opposition from competition advocates.
The American Economic Liberties Project (AELP), an anti-monopoly advocacy organisation, has urged regulators to block the transaction, arguing that the combined company would control nearly 60 per cent of the third-party grocery delivery market.
Lee Hepner, the organisation’s senior legal counsel, argued that the merger could increase the companies’ influence over retailers, workers and consumers.
He warned that the enlarged business could use its market position and access to data to exert greater pressure on workers’ compensation while increasing costs for consumers.
The proposed acquisition is part of a wider consolidation trend across the delivery industry as companies seek scale, stronger technology capabilities and broader access to customers.
In 2025, Wonder acquired Grubhub’s US business for $650 million, while Uber acquired European delivery company Delivery Hero in a $14.8 billion transaction this year. Uber had earlier acquired Postmates in 2020 for $2.65 billion.
The DoorDash-Instacart combination is expected to close in the coming months, subject to regulatory approval.
