DoorDash agreed Thursday to buy Instacart for $65 a share, a deal valued at about $17 billion in equity. The DoorDash Instacart deal was announced alongside both companies' third-quarter results, and it turns earlier rumors into signed terms.
Reports that Instacart was exploring a sale, which USA 24 covered, left the price and structure unknown. Now the terms are public. It is, by most measures, the biggest consolidation move yet in US app-based delivery, and it arrived on a day when technology stocks sold off hard.
The definitive agreement was signed Thursday, October 29, so it is roughly a day old. Both companies reported results alongside it. DoorDash posted third-quarter revenue of $4.6 billion, up 34% from a year earlier, and Instacart reported $1.1 billion, up 17%, according to Global News.
What DoorDash agreed to pay
DoorDash will pay $65.00 for each Instacart share, a total the companies value at about $17 billion in equity. That price is a 26% premium to Instacart's October 22 close, the last trading day before media reports of a possible transaction. Forbes puts that closing price at $51.68 and credits The Information with the first report.
Instacart's board approved the agreement unanimously. Holders of about 19% of the company's shares have agreed to vote in favor, according to the DoorDash SEC filing. The agreement has no financing condition, so DoorDash must close even if its borrowing costs rise. The company plans to fund the cash portion with cash on hand and debt.
Instacart CEO Chris Rogers framed the pitch in the company's press release. As TechCrunch reported it, he said “joining forces with DoorDash allows us to do even more.” The fuller release text appears in an SEC exhibit.
How the cash and stock election works
Instacart shareholders will not all receive the same package. At least 75% of the total consideration is cash, and each holder can choose one of three options:
- All cash: $65.00 per share
- All stock: 0.3372 DoorDash shares per Instacart share
- Mixed: $48.75 in cash plus 0.0843 DoorDash shares
Stock is capped at 25% of aggregate consideration. If too many holders pick the stock option, the stock portion is prorated, so some shareholders will receive a blend of cash and stock whatever they elected.
The all-stock option is only worth what DoorDash shares are worth when the deal closes, and that value moves with the market. The mixed option gives a known cash amount of $48.75 plus a smaller stake in the combined company. Shareholders who want certainty should look hard at the all-cash choice.
Which users and grocers could see changes
Instacart customers would gain access to more than 50,000 additional stores, on top of the nearly 100,000 already on the platform, according to DoorDash's investor release. DoorDash also plans to merge the two companies' membership programs into one, as Gizmodo reported. DoorDash said it will keep Instacart's brand, enterprise technology and app.
Neither company has said what happens to fees, item prices or delivery costs. That is the most important consumer question, and it remains unanswered. Readers who use both apps should write down what they pay now, including membership, service and delivery fees, so they have a baseline when the merged program's terms appear.
For grocers, DoorDash pitched the deal as a way to help smaller stores compete with Amazon and Walmart. It said grocers could use Instacart's technology to run their own storefronts and ad businesses. It also said local grocers could keep working with any delivery platform they choose, a promise that separates a tool from a lock-in. The reporting does not show whether that promise will appear in enforceable contract language.
Why antitrust review will set the timeline
The deal is expected to close in late 2027 or the first half of 2028, pending shareholder and regulatory approvals. Canada's Competition Bureau said it is reviewing the transaction. In the sources I reviewed, I found no confirmed US antitrust filing from the FTC or the Justice Department, and no stated review stage.
The two companies overlap in local delivery, courier networks and customers who order from both platforms. Regulators in Washington tend to look first at exactly that kind of overlap, even when the product categories differ. Whether state attorneys general will also examine the deal is an open question, the same kind of scrutiny other large recent deals have drawn.
Uber was named in earlier reports as a possible suitor. The reporting does not show a rival offer on the table, so the signed price is the only one investors can weigh for now.
What the market is telling investors
DoorDash shares rose more than 5% on the news, while Instacart fell about 1.5%, according to Yahoo Finance. Global News reported Instacart trading near $58.50 before the bell, well below the $65 headline price. A gap like that usually reflects the stock component, the long wait to closing and the regulatory risk that remains.
The broader market was far less friendly. The Nasdaq fell 2.86% on Friday, its worst day since June, after weak results from Intel and Amazon, Reuters reported. Investors are asking whether heavy AI and infrastructure spending will pay off, a question USA 24 has tracked in its coverage of this week's Big Tech earnings.
In that climate, a deal with a clear strategic story is easier to defend than another round of capital spending. DoorDash is betting that grocery scale will matter more to its future than its share price does this week.
What to do if you own Instacart stock or use both apps
- Read the merger terms in the SEC filing before you choose an election. Compare the cash, stock and mixed options, and remember that stock is capped at 25% of total consideration.
- Watch for the shareholder vote and the proxy materials, which will set the election deadline.
- If you hold Instacart shares through a broker, ask whether your broker needs instructions by a specific date, because missing a deadline can leave you with a default election.
- If you use both apps, record what a typical order costs today, including fees and membership charges, and compare it once the merged program's terms are published.
- If you run a grocery business, ask for written terms confirming you can use other delivery platforms, and get the pricing for storefront and ad tools in writing.
What comes next
Three developments will matter most in the coming months: the shareholder vote, whether US agencies open a formal review, and the terms of the combined membership program. The biggest unknown is price, meaning whether fees for shoppers, drivers and grocers stay where they are after closing. With a late 2027 or early 2028 close, a long stretch of regulatory and market scrutiny lies ahead. Watch how Amazon and Walmart respond, since DoorDash built its case around those two competitors.
