Key Notes
- DoorDash agreed to acquire Instacart at a stated $65-per-share value, or approximately $17 billion in equity, a 26% premium to its October 22 closing price.
- At least 75% of the total consideration will be cash, with DoorDash stock capped at 25% and shareholder elections subject to proration.
- Closing is expected in late 2027 or the first half of 2028, subject to shareholder and regulatory approvals, with both brands and apps expected to remain.
DoorDash Inc. (NASDAQ: DASH) has agreed to buy Instacart, legally Maplebear Inc. (NASDAQ: CART), in a transaction valuing the grocery-delivery company at approximately $17 billion. The agreement assigns a value of $65 to each Instacart share and would combine its retailer technology and grocery marketplace with DoorDash’s delivery network.
The companies announced the definitive agreement on October 29. They expect to close in late 2027 or the first half of 2028, subject to shareholder and regulatory approvals. Both businesses will remain independent until then.
The announcement advances the preliminary discussions we previously reported. For CART shareholders, there are now contractual payment terms to assess; for DASH investors, the focus shifts to financing a large acquisition and delivering the expected benefits.
What Instacart Shareholders Would Receive
The $65-per-share value represents a 26% premium to Instacart’s closing price on October 22, the last trading day before reports of a possible transaction. That comparison uses the price before the takeover discussions became public, rather than the latest market quote.
At least 75% of the aggregate consideration will be cash, with DoorDash shares limited to 25% of the total. Instacart shareholders can elect one of three forms of payment:
- $65 in cash for each Instacart share
- 0.3372 shares of DoorDash common stock
- $48.75 in cash plus 0.0843 DoorDash shares
Those elections are subject to proration. If demand for stock exceeds the overall limit, the share component will be allocated proportionally, so an individual holder’s preferred election is not guaranteed.
The distinction also matters for value: the cash election specifies a dollar amount, while a fixed number of DoorDash shares will fluctuate in market value. The headline $65 should therefore not be read as a guarantee that every possible election will always be worth exactly that amount.
Cash and Debt Will Fund the Deal
DoorDash expects to finance the cash portion with existing cash and borrowing. JPMorgan Chase Bank has provided a commitment for a 364-day senior unsecured bridge loan facility supporting the debt component.
The transaction is not subject to a financing condition. That does not mean DoorDash has already drawn the loan or disclosed the final long-term financing structure. The company said it is targeting a capital structure that preserves investment-grade credit ratings.
For DASH investors, the funding mix creates two different considerations. Borrowing can increase interest costs, while issuing shares adds to the equity base. Whether the acquisition earns an attractive return will depend on the combined business’s performance after those costs, rather than the transaction’s size alone.
Grocery Technology Is Central to the Strategy
DoorDash is buying more than a consumer ordering app. Instacart works with over 2,200 retail banners representing nearly 100,000 stores, and supplies ecommerce, fulfillment, advertising, in-store technology and AI tools through its wider platform.
DoorDash plans to combine those capabilities with its logistics network and consumer reach. The companies see opportunities to help retailers operate their own websites, build advertising businesses and handle more online orders, including through DoorDash’s DashMart Fulfillment Services.
The strategic argument is that local stores need technology and delivery capacity to compete with large online retailers. Owning both sets of capabilities could make that offering more comprehensive, but retaining retailers and executing the integration will determine whether the proposed advantages materialize.
Separate Apps and Shared Membership Benefits
DoorDash expects to retain Instacart’s brand, app and enterprise technology products after closing. The agreement does not envisage immediately replacing Instacart with a single DoorDash-branded consumer service.
The company said Instacart customers could gain access to more than 50,000 additional stores. It also plans to let DashPass and Instacart+ members pay one membership fee instead of two, estimating annual membership savings of $100 million. These are projected benefits of the proposed combination, not changes taking effect today.
DoorDash also committed to letting local grocers use other delivery platforms. Instacart shoppers would retain flexibility over their working hours and which batches to accept, with a choice between taking DoorDash orders and continuing to shop only for Instacart.
Shareholders and Regulators Still Need to Approve
Instacart’s board unanimously approved the agreement, and holders of approximately 19% of its outstanding shares have agreed to vote in favor. Those commitments support the transaction but do not replace the required shareholder approval.
Closing also depends on the U.S. antitrust waiting period, regulatory approvals including those in Canada and Israel, and other customary conditions. The late-2027 to first-half-2028 timetable remains an expectation, rather than a confirmed completion date.
DoorDash intends to file a Form S-4 registration statement that will include Instacart’s shareholder proxy statement and a prospectus covering the DoorDash shares to be issued. Those documents will provide further information for investors as the agreement moves toward a vote.
The companies have settled the headline price and payment structure. The remaining investment questions concern approval, financing and execution: whether a larger grocery-and-delivery platform can preserve retailer choice while producing enough growth to justify the acquisition.
