A reported negotiation becomes a signed agreement

DoorDash and Instacart announced on 29 October 2026 an agreement under which DoorDash plans to acquire Instacart for $65 a share. That equates to an equity value of approximately $17 billion and a 26% premium to the 22 October closing price, the last trading day before media reports of a possible transaction. [1 · DoorDash · joint announcement of the Instacart agreement, 29 October 2026] [2 · Instacart · joint announcement of the DoorDash agreement, 29 October 2026]

At least 75% of the aggregate consideration is to be paid in cash, with DoorDash shares capped at 25%. Instacart shareholders may elect $65 in cash, 0.3372 DoorDash shares, or a mixed option of $48.75 and 0.0843 DoorDash shares, although oversubscription for stock would trigger proration. Instacart’s board unanimously approved the agreement. [1 · DoorDash · joint announcement of the Instacart agreement, 29 October 2026] [2 · Instacart · joint announcement of the DoorDash agreement, 29 October 2026]

The companies expect closing in late 2027 or the first half of 2028. It still requires approval by Instacart shareholders, completion of the US antitrust waiting period, clearances in Canada and Israel, and other conditions. Holders of about 19% of Instacart shares have agreed to vote for the deal; the companies must remain separate until closing. [1 · DoorDash · joint announcement of the Instacart agreement, 29 October 2026] [2 · Instacart · joint announcement of the DoorDash agreement, 29 October 2026]

What DoorDash is buying—and what remains a promise

After closing, DoorDash intends to retain the Instacart brand, app and enterprise products. It also promises not to require grocery exclusivity and estimates that one membership instead of two would save customers about $100 million a year. These benefits are the buyer’s projections: the savings methodology and future pricing have not been disclosed. [1 · DoorDash · joint announcement of the Instacart agreement, 29 October 2026] [2 · Instacart · joint announcement of the DoorDash agreement, 29 October 2026]

Instacart enters the transaction as a growing business that is profitable under accounting measures. Third-quarter gross transaction value (GTV) rose 15% to $10.528 billion, while revenue increased 17% to $1.095 billion. GAAP net income was $147 million, up 2%; adjusted EBITDA, a non-GAAP measure, rose 23% to $342 million. [3 · Instacart · third-quarter 2026 results, 29 October 2026]

Because of the agreement, Instacart cancelled the earnings call scheduled for 5 November and suspended its financial outlook, including previously issued long-term targets. Retailers and customers therefore face a long transition: the proposed integration of apps, memberships, logistics and advertising tools can begin only after closing, if regulators approve the transaction. [1 · DoorDash · joint announcement of the Instacart agreement, 29 October 2026] [2 · Instacart · joint announcement of the DoorDash agreement, 29 October 2026] [3 · Instacart · third-quarter 2026 results, 29 October 2026]

Expert commentary

The established fact is that the parties signed an agreement; Instacart has not yet become part of DoorDash. With closing targeted for late 2027 or the first half of 2028, the next several quarters will test the two companies’ ability to retain partners, workers and operating momentum while they await regulatory decisions—not the effects of integration. [1 · DoorDash · joint announcement of the Instacart agreement, 29 October 2026] [2 · Instacart · joint announcement of the DoorDash agreement, 29 October 2026]

The strategic logic combines different shopping occasions: Instacart is strong in large grocery baskets and retailer technology, while DoorDash specialises in frequent local delivery and operates a broad courier network. Greater order density could, in theory, reduce courier idle time and last-mile costs. Savings will arise only where geography, demand timing and operations genuinely overlap; platform size alone does not guarantee them. [1 · DoorDash · joint announcement of the Instacart agreement, 29 October 2026] [2 · Instacart · joint announcement of the DoorDash agreement, 29 October 2026] [3 · Instacart · third-quarter 2026 results, 29 October 2026]

Antitrust review will be central. US merger guidelines separately consider competition between platforms, competition on a platform and competition to displace a platform, but the guidelines do not predetermine a particular decision. Regulators will have to assess more than one delivery price: grocers, advertisers, consumers and workers each occupy a different side of the market. [4 · FTC and US Department of Justice · explanation of the Merger Guidelines] [5 · FTC and US Department of Justice · 2023 Merger Guidelines]

The promise to keep grocery access open and non-exclusive reduces one obvious risk, yet it does not answer questions about commissions, ranking, advertising load or data use. For independent retailers, useful indicators will include cost per order, terms for working with rival services, the share of sales generated by advertising and fulfilment quality. Deterioration could weaken practical choice even if contracts remain formally open. [1 · DoorDash · joint announcement of the Instacart agreement, 29 October 2026] [2 · Instacart · joint announcement of the DoorDash agreement, 29 October 2026] [4 · FTC and US Department of Justice · explanation of the Merger Guidelines] [5 · FTC and US Department of Justice · 2023 Merger Guidelines]

Consumers are promised a single membership and about $100 million in annual savings; workers are promised a wider range of orders. For now, these are company estimates rather than measured outcomes. After any closing, observers should compare the full basket price including delivery and fees, available-store count, substitution quality and punctuality, as well as worker earnings per active hour after waiting time and mileage. [1 · DoorDash · joint announcement of the Instacart agreement, 29 October 2026] [2 · Instacart · joint announcement of the DoorDash agreement, 29 October 2026] [4 · FTC and US Department of Justice · explanation of the Merger Guidelines] [5 · FTC and US Department of Justice · 2023 Merger Guidelines]

A favourable scenario would combine approval without remedies that undermine the economics, retention of the Instacart brand and measurable service gains without higher total fees. Risks include a prolonged review, mandatory concessions, financing costs and integration complexity. Observable milestones are the shareholder vote, regulatory decisions, an updated financing structure, and GTV, profitability and partner-retention trends before closing. [1 · DoorDash · joint announcement of the Instacart agreement, 29 October 2026] [2 · Instacart · joint announcement of the DoorDash agreement, 29 October 2026] [3 · Instacart · third-quarter 2026 results, 29 October 2026] [4 · FTC and US Department of Justice · explanation of the Merger Guidelines] [5 · FTC and US Department of Justice · 2023 Merger Guidelines]

Sources

  1. DoorDash · joint announcement of the Instacart agreement, 29 October 2026 — Primary source for the price, form of consideration, closing conditions and stated post-transaction commitments.
  2. Instacart · joint announcement of the DoorDash agreement, 29 October 2026 — Official copy of the joint announcement on Instacart’s website; confirms board approval and the status of the signed agreement.
  3. Instacart · third-quarter 2026 results, 29 October 2026 — Primary source for Instacart’s financial metrics for the quarter ended 30 September 2026 and its suspension of guidance.
  4. FTC and US Department of Justice · explanation of the Merger Guidelines — Official explanation of the merger-review framework, including platform competition; it does not determine the outcome of a particular review.
  5. FTC and US Department of Justice · 2023 Merger Guidelines — Primary policy source on reviewing competition between platforms, on a platform and to displace a platform.