DoorDash to buy Instacart for $17 billion
DoorDash has agreed to purchase Instacart in a deal valued at roughly $17 billion, equating to $65 per share, the companies confirmed Thursday. This acquisition signals intensified competition for Amazon and Walmart in the grocery home-delivery space.
DoorDash and Instacart have a combined 82 million active monthly users. The transaction is expected to close by the end of 2027 or in the first half of 2028.
Combined Strengths
Until the transaction closes, DoorDash and Instacart will continue to operate as separate and independent companies. According to Chris Rogers, Instacart’s CEO, the combined company can create new opportunities for retail and brand partners, offer a better experience for customers and shoppers, and deliver compelling value for shareholders.
Rogers said, “When our purpose-built grocery technology and trusted retailer and brand relationships are combined with DoorDash’s global consumer reach and logistics capabilities, we can accelerate innovation across the grocery industry and make online grocery more seamless and affordable for the millions of households we serve.”
Recent Developments
Instacart recently announced plans to wind down its Caper Cart business, ending its investment in smart shopping carts as the company shifts its in-store strategy toward software, data, and artificial intelligence. Meanwhile, DoorDash unveiled Brand Center, a platform that combines data from consumer purchases with information collected inside stores.
Instacart made a similar move this summer when it acquired computer vision company Arpalus, which has developed shelf intelligence technology built for grocery retail. The two companies will take on Amazon, which continues to make strong inroads in the grocery delivery market.
Amazon announced the ability to offer same-day grocery delivery in May and rolled out Amazon Now, a rapid delivery service, to dozens of cities, offering grocery delivery in 30 minutes or less. The service was initially rolled out in several cities, including Austin, Houston, and Minneapolis.
Bill Wilson, the executive editor of Supermarket News, brings a deep background in grocery and retail reporting. He has spent 25 years covering the B2B sector, developing a reputation for insightful analysis of supply-chain trends and market forces. Wilson’s reporting has earned him two Robert F. Boger awards recognizing excellence in infrastructure journalism, and his work overall has accumulated more than 25 editorial honors throughout his career.
A cum laude graduate of Southern Illinois University at Carbondale, he studied broadcast communications, which underpins his ability to translate complex industry data into clear stories for professionals. Industry leaders often cite his columns when evaluating strategic partnerships, and his insights are frequently quoted in press releases and conference panels. His reporting highlights competitive pressures shaping grocery delivery.
