DoorDash agrees to buy Instacart at $65 a share in $17 billion deal

DoorDash has signed an agreement to buy the grocery delivery company Instacart for $65 a share, valuing it at about $17 billion, the two companies announced on Thursday, October 29, 2026. The price is about 26% above Instacart's closing share price on October 22, the last trading day before reports of the talks emerged. Instacart's board approved the deal unanimously, and shareholders holding about 19% of its shares have agreed to vote for it. The companies expect the deal to close between late 2027 and the first half of 2028, subject to regulatory approvals.

Last week's reports said a deal was close. Now it is signed, with a price, a payment structure and a timetable. For Instacart shareholders, the key detail is the 26% premium and the choice between cash and DoorDash stock. For the industry, it is the scale: the deal would join one of the biggest US restaurant delivery apps with a leading grocery delivery platform, creating a company that can deliver both meals and weekly shopping to the same customers.

DoorDash has framed the deal around helping local stores compete. Its pitch is that combining Instacart's relationships with supermarkets with DoorDash's network of delivery drivers and customers will let neighbourhood grocers offer fast delivery at a cost they could not reach alone. Analysts have described it as a direct challenge to Amazon and Walmart, which have both pushed hard into online grocery.

The long timeline shows how big the regulatory test is. Antitrust regulators examine whether a merger would reduce competition and raise prices for consumers or squeeze the workers and stores that depend on the platforms. Putting two large delivery apps for food and groceries under one roof is the kind of deal that attracts close scrutiny, and earlier talks between the two companies in 2021 reportedly fell apart partly over such concerns. The companies are allowing well over a year for reviews in the US, Canada and Israel.

For Indian readers, the deal is a reminder of how delivery businesses are consolidating worldwide. India's own fast-growing quick commerce market, where apps deliver groceries in minutes, still has several competing apps. A US merger of this size shows where such markets can head once growth slows: towards fewer, bigger platforms, and towards regulators who must decide how much concentration is acceptable.

Short-term: Instacart's shares are likely to trade close to the offer value as investors weigh the chance of regulatory approval, while DoorDash shareholders assess the cost.

Long-term: If approved, the combined company would have far greater reach in US food and grocery delivery, which could change fees for stores and customers and the terms offered to delivery workers.

Who is affected: Instacart and DoorDash shareholders, supermarkets and local grocers on both platforms, delivery workers, US consumers, and rivals such as Amazon, Walmart and Uber.

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