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MajorMarket eventThu, Oct 292 min read
The combination could improve delivery economics and intensify competition, while leaving merchants more dependent on one platform owner.
DoorDash and Instacart announced a definitive acquisition agreement on October 29, valuing each Instacart share at $65.00 and the company's equity at approximately $17 billion. Instacart shareholders can elect cash, DoorDash stock or a combination, but their allocations may be adjusted proportionately so that at least 75% of the total payment is cash.[1]
The deal would bring the largest US restaurant delivery service and the largest online grocery platform under one owner.[2] DoorDash says both apps will remain.[3] The acquisition is pending and is expected to close in late 2027 or the first half of 2028.[4]
DoorDash would expand beyond restaurant delivery by gaining access to Instacart's grocery orders and merchant network.[5] Instacart's third-quarter gross transaction value—the value of transactions on its platform—grew 15% from a year earlier, while revenue rose 17%, showing that the business is still expanding ahead of the acquisition.[6] If the companies can coordinate customer marketing and delivery resources effectively, more orders could spread costs across a larger business and help the combined company compete for consumer spending; those benefits depend on integration after closing.[2]
Merchants could reach more customers through the combined company, but having two major delivery channels under one owner could also reduce their bargaining power over fees and service terms.[2] Pricing and worker outcomes remain contested: New York City Mayor Zohran Mamdani warned of higher prices and worse working conditions, while DoorDash says the acquisition will create new opportunities for delivery workers.[7][3]
DoorDash would gain a larger grocery business and an opportunity to improve efficiency through greater order volume. Other delivery platforms could face a rival serving more shopping needs, increasing pressure to improve service or spend on promotions to retain customers; the impact depends on closing and integration.[2][5][4]
Merchants could gain orders through a larger platform network, while needing to assess their dependence on one owner. DoorDash's commitment to preserve both apps keeps those customer channels available, but common ownership could change merchants' leverage when negotiating fees and service terms.[2][3]