DoorDash announced on Thursday, Oct. 29, 2026, that it has entered a definitive agreement to acquire Instacart for approximately $17 billion. The deal is valued at $65 per share and will be paid through a combination of cash and stock. Following the announcement, DoorDash shares rose 6.5%.
The acquisition follows a period of competition in the app-based delivery market. Reuters reported that a slowdown in orders since pandemic-era peaks, rising costs, and regulatory scrutiny regarding the treatment of gig workers have prompted a wave of consolidation in the industry. Delivery companies are currently expanding into groceries, convenience items, and retail as their core restaurant delivery businesses reach maturity.
DoorDash reported third-quarter revenue of $4.61 billion, while Instacart reported $1.10 billion in revenue for the same period. DoorDash CEO Tony Xu stated that the merger would allow more supermarkets to use Instacart’s technology to manage their websites while leveraging DoorDash’s delivery network. Instacart CEO Chris Rogers noted that the company’s fundamentals were strong, with gross transaction value rising 15% year-over-year in the third quarter.
This acquisition combines two of the largest players in the U.S. delivery market, involving approximately 9.6 million independent contractors. This includes 9 million DoorDash delivery workers and 600,000 Instacart shoppers. While the companies intend to eventually integrate their technological tools, the Instacart brand name and app will remain active for the time being. Instacart shoppers will be permitted to continue fulfilling orders on their current platform, and grocery stores will retain the option to partner with either service or both.
For consumers, the deal involves expanded access across retail locations. Instacart customers will gain access to 50,000 additional stores covered by the DoorDash network. This follows a period of expansion for DoorDash, which recently added delivery services for the full inventory of 2,700 Kroger stores and a new partnership with Costco. The merger integrates Instacart's fulfillment and AI advertising tools with a delivery network that spans 40 countries and completed more than three billion orders last year.
The companies will continue to operate as separate, independent entities until the transaction officially closes. A specific effective date for the completion of the merger was not reported. The deal follows a trend of consolidation as delivery platforms move beyond restaurant meals into sectors like pet food and electronics. Moving forward, the combined entity will need to navigate regulatory scrutiny regarding the legal status of its gig-economy workers.