Key Takeaways
- DoorDash Instacart acquisition: DoorDash agreed on Oct. 29, 2026, to buy Instacart for $65 a share, an equity value of about $17 billion and a 26% premium to Instacart's Oct. 22 closing price.
- Mostly cash: At least 75% of the price, or at least $12.75 billion, will be paid in cash, with the rest in DoorDash stock.
- Timeline: The deal needs stockholder and antitrust approval and is expected to close at the end of 2027 or in the first half of 2028.
- SNAP shoppers: Both apps accept SNAP benefits online. DoorDash says more than 4.5 million shoppers have added a SNAP card to its app.
DoorDash agreed on Oct. 29, 2026, to acquire Instacart for $65 a share, an equity value of about $17 billion, in a deal that would combine DoorDash's delivery network with Instacart's grocery technology. Instacart's platform covers nearly 100,000 stores, the companies said.
DoorDash's $17 Billion Instacart Acquisition Terms
Instacart stockholders can take $65 in cash, 0.3372 DoorDash shares or a mix of cash and stock for each share they own, with DoorDash stock capped at 25% of the total, according to the companies' announcement. Instacart's board approved the deal unanimously. DoorDash plans to pay the cash from cash on hand and new debt, backed by a 364-day bridge loan commitment from JPMorgan Chase.
The $65 price is a 26% premium to Instacart's closing price on Oct. 22, 2026, the last trading day before media reports about a possible transaction, the AP reported. TechCrunch reported that Instacart had a market cap of more than $13 billion.
"Grocery is one of the hardest things to get right online," DoorDash co-founder and CEO Tony Xu said. "Over the last 14 years, Instacart has transformed online grocery by helping retailers of all sizes compete and grow, and joining forces with DoorDash allows us to do even more," said Instacart CEO Chris Rogers.
What DoorDash Promises Grocers, Shoppers and Members
DoorDash says local grocers will stay free to work with any delivery platform, and Instacart shoppers can keep their current features and choose whether to take DoorDash orders. DoorDash expects to keep Instacart's brand, enterprise technology and app. DashPass and Instacart+ members would pay one membership fee instead of two, which the companies estimate would save them $100 million a year, and Instacart customers could shop at more than 50,000 additional stores.
Critics are already lining up, Grocery Dive reported. The United Food and Commercial Workers International Union, which represents 1.2 million workers across North America, called the deal a nightmare for shoppers and workers. The American Economic Liberties Project warned of a food delivery monopoly, and its senior legal counsel, Lee Hepner, said the companies would use their power "to squeeze worker compensation on the way in and drain consumer wallets on the way out."
What the DoorDash Instacart Deal Means for SNAP Households
Both apps let shoppers pay with SNAP online. Instacart first accepted SNAP in 2020 and expanded it to all 50 states in 2023, when it offered SNAP participants 50% off an Instacart+ membership, TechCrunch reported. DoorDash says more than 4.5 million shoppers have added their SNAP card to its app, KCBD reported in May, when DoorDash began taking SNAP for Kroger deliveries.
The deal announcement does not mention SNAP. Until closing, which could come as late as the first half of 2028, about 20 months after the announcement, DoorDash and Instacart will keep operating as separate companies.
The Investor Who Passed on Instacart at $10 Million
Elizabeth Yin, who co-founded the venture firm Hustle Fund in 2017 after serving as a partner at 500 Startups, wrote on X on Nov. 6 that her boss at her previous firm once asked whether to invest in Instacart at a $10 million post-money valuation. "I recommended we pass because the valuation seemed high and the business seemed capital intensive," Yin wrote.
By her math, a $10 million valuation turning into a $17 billion exit is 1,700x before dilution. Because carry is split among a firm's partners and vests over time, she wrote, the miss cost her something closer to $10K.
People Also Ask
How much is DoorDash paying for Instacart?
DoorDash is paying $65 per Instacart share, an equity value of about $17 billion, with at least 75% of it in cash.
When will the DoorDash Instacart deal close?
DoorDash and Instacart expect the deal to close at the end of 2027 or in the first half of 2028. It needs approval from Instacart stockholders, U.S. antitrust clearance and approvals in Canada and Israel.
Can you use SNAP on DoorDash and Instacart?
Yes. Instacart accepts SNAP online in all 50 states, and DoorDash says more than 4.5 million shoppers have added a SNAP card to its app. DoorDash and Instacart have not said how SNAP checkout will work after the deal closes.
Sources: DoorDash and Instacart, TechCrunch, AP via ABC News, Grocery Dive, TechCrunch, KCBD, Wikipedia. Related: DoorDash's food as medicine fund.