DoorDash Agrees to Buy Instacart for About $17 Billion

DoorDash agreed on Thursday to buy Instacart for $65.00 a share in cash and stock, a definitive deal valuing the grocery platform at about $17 billion.

The companies announced the definitive agreement on Oct. 29, 2026. DoorDash signed the merger agreement a day earlier, on Oct. 28.

Instacart's legal name is Maplebear Inc. After closing, it will be a wholly owned subsidiary of DoorDash. The merger vehicle named in the filing is Ibiza Merger Sub, Inc.

Terms value each Instacart share at $65.00

The offer price is $65.00 per share in cash value. The companies put the equity value at about $17 billion in total.

That price is a 26% premium to Instacart's Oct. 22 close. Oct. 22 was the last trading day before reports of deal talks surfaced.

Measured against Wednesday's close, the premium is smaller. Coverage of the announcement put it at roughly 11% to the Oct. 28 close.

Instacart's board approved the agreement unanimously. Holders of about 19% of the shares have agreed to vote in favor.

Holders choose cash, stock, or a mix

For each share, holders can elect $65.00 in cash. They can instead elect 0.3372 shares of DoorDash common stock.

A third choice pays $48.75 in cash plus 0.0843 shares. Holders who make no valid election receive the $65.00 cash amount by default.

At least 75% of the total will be paid in cash. DoorDash stock is capped at 25% of the aggregate consideration.

Proration — scaling back elections when a choice is oversubscribed — applies to the stock options. If too many holders elect stock, they receive it on a prorated basis.

A $13 billion bridge backs the cash

DoorDash expects to fund the cash with cash on hand and debt. The deal carries no financing condition, so funding cannot block closing by itself.

JPMorgan Chase Bank committed a $13.0 billion bridge loan for the debt portion. The facility is a 364-day senior unsecured bridge, a short-term loan meant to be replaced.

DoorDash plans to refinance before closing with longer-term debt. It is targeting a capital structure that keeps investment-grade ratings.

Break fees price a failed deal

Instacart would pay DoorDash $650 million in specified circumstances. Those circumstances include ending the deal to accept a superior proposal.

DoorDash would pay Instacart $1.25 billion if antitrust conditions block closing. The same fee applies if the outside date passes with approval still missing.

The outside date is 12 months after signing. It extends automatically by three months, up to four times, while antitrust conditions remain unsatisfied.

What DoorDash says survives the deal

DoorDash expects to keep Instacart's brand after closing. It also expects to keep the Instacart app and its enterprise technology products.

Instacart partners with more than 2,200 retail banners. Those banners represent nearly 100,000 stores across its marketplace and enterprise platform.

The companies will operate separately until closing. Members of DashPass and Instacart+ would later pay one fee instead of two.

DoorDash put the combined member saving at an estimated $100 million a year. Local grocers could still work with any delivery platform they choose.

The wait is the story in the share price

Closing is targeted for late 2027 or the first half of 2028. Approval is needed from Instacart stockholders and antitrust regulators in three countries.

The United States review runs under the Hart-Scott-Rodino Antitrust Improvements Act. Canada and Israel must also clear the deal before it can close.

In early trading Thursday, Instacart shares were flat at $58.35, Reuters reported. DoorDash shares jumped nearly 6% in the same snapshot.

The gap to $65.00 is about $6.65 a share, a TickerGrove calculation. It is roughly a 10% discount to the cash terms.

That spread prices the long wait and the review risk. Stock elections also move with DoorDash's share price, so their value is not fixed.

Both companies reported results the same morning

DoorDash reported third-quarter revenue up 34% to $4.6 billion. Total orders rose 28% to 993 million in the quarter ended Sept. 30, 2026.

Its net income rose 91% to $466 million. Adjusted earnings before interest, taxes, depreciation and amortization rose 41% to $1.06 billion.

Instacart's third-quarter revenue rose 17% to $1.1 billion. Its gross transaction value — the value of goods sold through its platform — rose 15% to $10.53 billion.

Instacart canceled its Nov. 5 earnings call after signing. It also suspended financial guidance and withdrew its long-term guidance.

New York officials pushed back within hours

New York City Mayor Zohran Mamdani criticized the deal on Oct. 29. “This week, they’ve managed to find $17 billion to acquire one of their main competitors,” he wrote. He linked the price to the city's $131.5 million DoorDash settlement in September. The city's consumer protection department called the merger a “troubling trend” of consolidation.

What remains unknown

What remains unknown is how regulators will judge the combined grocery reach. It is also unknown whether Instacart holders will approve the deal as priced.

Also unknown is what conditions, if any, clearance will require. What to watch is the antitrust review, the stockholder vote, and the refinancing of the bridge.

Also unknown is whether a rival bidder will emerge during the long pendency. The agreement's break fees now put a stated price on that path.