DoorDash to buy Instacart for $65 a share in $17 billion deal
DoorDash agreed to acquire Instacart for $65.00 a share in cash, or an equity value of about $17 billion. Instacart holders can elect cash or DoorDash stock, subject to proration.
Key takeaways
- DoorDash, Inc. (DASH) agreed on Oct. 28, 2026 to acquire Maplebear Inc., Instacart (CART), for $65.00 per share in cash or stock, an equity value of about $17 billion. Instacart stockholders holding about 19% of voting power have agreed to support it. Closing is expected in late 2027 or the first half of 2028.
DoorDash, Inc. (DASH) said on Oct. 29 it will acquire Maplebear Inc., the parent of Instacart, under a merger agreement signed on Oct. 28, 2026.
The transaction values Instacart at $65.00 per share, a 26% premium to its closing price on Oct. 22, 2026, according to the company's press release. The release puts the equity value at about $17 billion.
The company said in a filing that Instacart stockholders can elect to receive $65.00 in cash, 0.3372 shares of DoorDash Class A common stock, or a mix of $48.75 in cash and 0.0843 shares. Stock elections are capped at 25% of the aggregate consideration, and elections above that cap are prorated.
DoorDash said it may instead issue Class C common stock in place of Class A shares, subject to conditions set out in the merger agreement.
The merger requires approval by Instacart stockholders, expiration or termination of the Hart-Scott-Rodino waiting period, and approvals in Canada and Israel. The transaction is not subject to a financing condition.
Instacart holders representing about 19% of the voting power have signed voting agreements to support the deal, the filing said.
DoorDash will pay Instacart a termination fee of $650 million in specified circumstances. Instacart will pay DoorDash $650 million in specified circumstances, and DoorDash will pay Instacart $1.25 billion if the deal fails on antitrust grounds.
To fund the cash portion, DoorDash said it will use cash on hand and debt. On Oct. 28, JPMorgan Chase Bank, N.A. committed to a 364-day senior unsecured bridge term loan of up to $13.0 billion, the filing said. DoorDash said it expects to replace the bridge before closing.
The companies expect the deal to close in the end of 2027 or the first half of 2028. DoorDash said it will keep the Instacart brand and app after closing.
Tony Xu, co-founder and CEO of DoorDash, said: "Grocery is one of the hardest things to get right online." He added, "Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery."
Chris Rogers, CEO of Instacart, said joining forces "allows us to do even more."
DoorDash said that together the companies would offer more than 50,000 additional stores to Instacart customers. It also said DashPass and Instacart+ members would pay one membership fee instead of two, saving an estimated $100 million per year.
The companies will report DoorDash's third quarter 2026 results and discuss the deal on a call at 5:30 a.m. PT, the release said.