DoorDash announced a deal to buy delivery marketplace competitor Instacart, in a move that will leave users with one less iPhone app-based delivery option.
DoorDash announced the move via a press release, noting that the purchase price of $65 per share represents a 26% premium to Instacart’s closing price as of October 22, 2026. The aggregate consideration in the transaction will be at least 75% cash, with shareholders able to choose cash or DoorDash stock as payment.
While the deal has yet to be finalized, it is in both companies’ best interests for the purchase to go forward. Settlement fees would see Instacart pay $650 million and DoorDash $1.25 billion if the deal falters.
For DoorDash, the deal represents an opportunity for the company to expand beyond food deliveries to restaurants, into the grocery market and beyond. Instacart had previously had talks with Uber about the potential of a deal that ultimately came to nothing.
Consolidation concerns
While DoorDash believes the deal to purchase Instacart will see consumers “benefit from more choice” and enjoy “convenient deliveries and savings,” many will have concerns. Consolidating options within any industry, eliminating competition, usually means the opposite of what DoorDash says will happen.
Those who work to deliver food and groceries may also fear their pay will be reduced due to a lack of competition in the industry. DoorDash once again argues the opposite, arguing that there will be greater revenue opportunities generated by the acquisition.
However, even though the deal is not expected to be concluded before the end of 2027, there are still obstacles to overcome. Regulatory approval is required and an antitrust review is likely.
Despite this likelihood, the current regulatory situation in the United States is favorable to agreements of this type.
Before the purchase, WalMart has control of the grocery delivery market. If the deal passes, the DoorDash/Instacart combination is estimated to hold about 60%.
