DoorDash Agrees to $17 Billion Cash-and-Stock Acquisition of Instacart

DoorDash, Inc. (DASH ) and Maplebear Inc. (CART ), which operates as Instacart, announced on October 29, 2026 that they have entered into a definitive agreement under which DoorDash will acquire Instacart for $65.00 per share, an equity value of approximately $17 billion (all figures in U.S. dollars). Aggregate consideration will be at least 75% cash, with DoorDash common stock capped at 25% of the total, according to the companies’ joint announcement.

The per-share value represents a 26% premium to Instacart’s closing price on October 22, 2026, the last trading day before media reports about a possible transaction. Instacart stockholders will have the right to elect, for each Instacart share, $65.00 in cash, 0.3372 shares of DoorDash common stock, or a mix of $48.75 in cash and 0.0843 shares of DoorDash common stock, subject to the 25% stock cap and proration if the stock consideration is oversubscribed. Instacart’s board of directors unanimously approved the agreement, and stockholders holding about 19% of Instacart’s outstanding shares have agreed to vote in favor of the transaction.

Financing and Regulatory Path

The merger agreement is among DoorDash, Ibiza Merger Sub, Inc., a wholly owned DoorDash subsidiary, and Instacart. DoorDash expects to fund the cash portion of the consideration with cash on hand and proceeds from debt financing, and it has entered into a financing commitment letter with JPMorgan Chase Bank, N.A. providing for a 364-day senior unsecured bridge loan facility. The transaction is not subject to a financing condition, and DoorDash said it is targeting a capital structure that will maintain investment-grade ratings.

The companies expect the transaction to close at the end of 2027 or in the first half of 2028, subject to approval by Instacart stockholders, expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, other regulatory approvals including in Canada and Israel, and other customary closing conditions. DoorDash intends to file a registration statement on Form S-4 with the Securities and Exchange Commission that will include an Instacart proxy statement and constitute a DoorDash prospectus. Until the transaction closes, the companies will continue to operate as separate and independent companies.

Stated Benefits and Post-Closing Commitments

The companies said the combined business would offer grocers and retailers of every size DoorDash’s delivery network and Instacart’s grocery and fulfillment technology, in both apps and on stores’ own websites, along with the advertising and AI tools each company has built. DoorDash said Instacart customers could shop at more than 50,000 additional stores, on top of the nearly 100,000 stores on Instacart’s platform today, and that DashPass and Instacart+ members would pay one membership fee instead of two, saving members an estimated $100 million per year in membership fees.

DoorDash also announced post-closing commitments tied to the deal. Local grocers will be able to work with any delivery platform they choose, with no grocery exclusivity. Instacart Shoppers will keep existing features, including the information they use to decide which batches to accept and the choice of whether to take on DoorDash orders or keep shopping only on Instacart. DoorDash expects to keep Instacart’s brand, enterprise technology products, and app following closing.

“Instacart has spent years learning to do that well for grocers, while DoorDash has built a delivery network and technology that local stores rely on every day,” said Tony Xu, co-founder and CEO of DoorDash, who described grocery as one of the hardest things to get right online. Instacart CEO Chris Rogers said that “joining forces with DoorDash allows us to do even more,” pointing to new opportunities for retail and brand partners and value for shareholders.

In its third-quarter 2026 results, released the same day, DoorDash said it sees a multi-year path to $500 million or more of annual synergies from the transaction, net of investments. The company expects to invest more than 100% of total synergies in the first year after close, with positive net synergies in year two and beyond. DoorDash also said Instacart’s scale would help amortize the fixed cost of managing inventory on behalf of grocers. Through its DashMart operations, the company said it manages thousands of products from Giant Eagle, Albertsons, and others, and reported fulfillment accuracy above 99% and average delivery times more than 10 minutes faster than other grocery orders in U.S. geographies with an active DashMart store during the quarter.

For the quarter ended September 30, 2026, DoorDash reported Total Orders up 28% year over year to 993 million, Marketplace GOV up 36% to $33.9 billion, and revenue up 34% to $4.6 billion. GAAP net income attributable to common stockholders rose 91% to $466 million, and Adjusted EBITDA rose 41% to $1,060 million. The company said year-over-year Marketplace GOV growth in its U.S. grocery and retail categories ran at more than double the pace of its U.S. restaurant category in the quarter.

For the fourth quarter of 2026, DoorDash guided Marketplace GOV of $35.4 billion to $36.4 billion and Adjusted EBITDA of $900 million to $1,100 million, an outlook the company said assumes relatively stable consumer demand and foreign currency rates. DoorDash discussed the transaction on its earnings call at 5:30 a.m. Pacific Time (8:30 a.m. Eastern Time) on October 29, 2026.

Centerview Partners LLC is acting as lead financial advisor to DoorDash, with J.P. Morgan Securities LLC also acting as a financial advisor, and Latham & Watkins LLP serving as legal counsel. JPMorgan Chase Bank, N.A. acted as sole lead arranger and bookrunner on the committed bridge financing. Goldman Sachs (GS ) & Co. LLC is acting as financial advisor to Instacart, with Cravath, Swaine & Moore LLP and Cooley LLP serving as legal counsel.