DoorDash proposes $17 billion purchase of Instacart

DoorDash has offered $17 billion to acquire Instacart in a move that would significantly consolidate the grocery delivery market. The proposal values Instacart at approximately 21% above its current market value of $14 billion. If approved, the deal would combine DoorDash's logistics network with Instacart's specialized grocery operations.

Instacart, which was founded in 2012, focuses on grocery and convenience store delivery across the United States and Canada. The company employs 600,000 independent contractors, known as shoppers, who completed 338 million orders in the last year. DoorDash, founded in San Francisco in 2013, started as a restaurant delivery service before expanding into pet food and electronics. It operates in 40 countries and utilizes a network of 9 million independent delivery workers to complete more than 3 billion orders annually. DoorDash currently holds a market value of $73 billion.

DoorDash entered the grocery sector in 2020 during a surge in pandemic-era demand. Initial adoption by major grocers was slow. Kroger began partnering with DoorDash in 2022 but restricted the service to flowers, sushi, and prepared meals from a limited number of locations. The partnership expanded in the fall of 2025, allowing DoorDash to list the full inventory of all 2,700 U.S. Kroger stores in its online marketplace. In September 2025, DoorDash added delivery services from Costco.

Tony Xu, co-founder and CEO of DoorDash, stated that the acquisition will merge Instacart's grocery expertise with DoorDash's logistics capabilities. In a company statement, Xu noted that grocery delivery requires specific tools, such as selecting ripe produce and managing perishables like ice cream. He said the combined entity would provide these tools to stores of every size.

The proposal comes as DoorDash has steadily gained market share at Instacart's expense. Five years ago, Instacart accounted for 26% of spending on U.S. delivery platforms. That share has decreased to 18%, according to market research firm Consumer Edge. During the same period, DoorDash's share increased from 44% to 59%. Uber Eats maintained a share of just under 20%.

Under the proposed terms, the Instacart brand name and app would remain, and its shoppers would continue fulfilling orders in the same manner. Grocers would have the option to work with either Instacart or DoorDash. DoorDash customers would gain access to 50,000 additional stores currently covered by Instacart.

The deal leaves some existing partnerships in question. Instacart currently provides delivery for Walmart, a service DoorDash discontinued in 2022. It is not yet determined how the acquisition will affect this arrangement.