Retail Media: DoorDash to Acquire Instacart in US$17 Billion Deal
DoorDash agreed to acquire Instacart in a deal valued at about US$17 billion, with potential implications for grocery delivery, retailer technology, and retail media advertising.
DoorDash and Instacart announced on October 29 an agreement for DoorDash to acquire Instacart in a transaction the companies valued at about US$17 billion. Under the terms disclosed in the announcement, Instacart shareholders would receive US$65 per share, described as a 26% premium over the stock’s October 22 closing price. Instacart’s board approved the deal, which still requires shareholder and regulatory clearance.
The companies said the combination would link DoorDash’s delivery network with Instacart’s grocery technology and the advertising and artificial intelligence tools developed by both businesses. They expect Instacart’s technology for retailer-operated websites and retail media networks could help more grocers build their own advertising platforms and give advertisers access to a larger set of online shopping environments.
Instacart works with more than 2,200 retail banners representing nearly 100,000 stores, the announcement said. The companies added that, if the deal closes, Instacart’s customers could gain access to more than 50,000 additional stores through DoorDash. DoorDash plans to keep the Instacart brand, app and enterprise technology products.
Both companies said they will continue operating independently until the transaction is completed. They expect closing in late 2027 or the first half of 2028, subject to regulatory reviews in the United States, Canada and Israel.