DoorDash to Acquire Instacart in $17 Billion Deal

DoorDash shareholders will pay 65 dollars per share to acquire Instacart, a move that values the grocery delivery firm at approximately 17 billion dollars. The transaction, approved by both boards of directors, aims to consolidate two major apps used for food and grocery delivery under a single owner. If the deal proceeds, customers who currently pay for memberships on both platforms will combine them into one fee.

The companies expect the merger to close either at the end of 2027 or in the first half of 2028. Before that date, the transaction requires a vote from Instacart stockholders and regulatory approvals in Canada and Israel. It also depends on the expiration of the Hart-Scott-Rodino waiting period, the federal window during which antitrust regulators review large mergers. A 364-day bridge loan from JPMorgan Chase backs the cash portion of the purchase.

The deal structure includes specific exit terms that reflect uncertainty about regulatory outcomes. Either company can terminate the agreement if it has not closed within 12 months of signing, though this deadline can extend by up to four three-month periods if antitrust approval is the final hurdle. If the deal fails under certain conditions, DoorDash owes Instacart 1.25 billion dollars, while Instacart owes 650 million dollars to DoorDash.

Critics argue the merger would give the combined entity nearly 60 percent of the third-party grocery delivery market. The American Economic Liberties Project urged regulators to block the deal, citing potential harm to local businesses and workers. New York City's consumer protection agency described the transaction as part of a troubling trend of corporate consolidation. The companies counter that customers will save roughly 100 million dollars annually on membership fees and that delivery workers will gain new earning opportunities.

The review process occurs against a backdrop of debate over federal antitrust enforcement. Rep. Becca Balint and Sen. Elizabeth Warren released a report on October 22 alleging the administration routinely approves harmful mergers. They cited the Compass-Anywhere real estate deal, which reportedly gave Compass control of up to 70 percent of home sales in some areas. The Justice Department rejected these claims, with Associate Attorney General Stanley Woodward stating that market dynamics create incentives to protect competition.

Both firms face existing scrutiny regarding their business practices. The Federal Trade Commission ordered nine delivery companies, including DoorDash and Instacart, to provide detailed information on how they use personal data for pricing and pay. DoorDash recently agreed to pay 131.5 million dollars to settle a New York City investigation into courier pay, including a 16.7 million dollar fine and relief for about 264,000 workers.

Instacart’s pricing methods drew specific attention from a coalition of consumer groups. An investigation found that shoppers were unknowingly enrolled in AI-enabled pricing tests that could raise item costs by up to 23 percent. Instacart stated that customers were randomly assigned to these tests and that the company does not use personal data to set online item prices.