DoorDash to acquire Instacart for $17 billion in cash and stock

DoorDash agreed on Wednesday to purchase Instacart for 65 dollars per share, valuing the grocery delivery company at approximately 17 billion dollars. The acquisition was approved by both boards and announced alongside DoorDash's third-quarter earnings. If the transaction clears regulatory hurdles, the two major players in app-based delivery will operate under a single ownership structure.

The deal is not yet final. The companies expect to close the transaction by the end of 2027 or in the first half of 2028. Completion requires a vote from Instacart stockholders, regulatory approval in Canada and Israel, and the expiration of the Hart-Scott-Rodino waiting period. During this waiting period, federal antitrust regulators will review the merger for potential market harm.

Instacart shareholders have three payment options: 65 dollars in cash, 0.3372 shares of DoorDash stock, or a mixed package of 48.75 dollars in cash plus 0.0843 shares of stock. JPMorgan Chase is providing a 364-day bridge loan to back the purchase. Holders of 19% of Instacart's shares have already agreed to vote in favor of the deal. The agreement includes a 1.25 billion dollar breakup fee payable by DoorDash if the merger fails under specific circumstances.

Critics argue the combination will concentrate too much power in one entity. The American Economic Liberties Project states that the merged company would control nearly 60% of the third-party grocery delivery market. The group urged regulators to block the merger, claiming it would harm local businesses and workers. New York City's consumer protection agency also described the merger as part of a troubling trend of corporate consolidation.

The federal debate centers on how actively the Justice Department and Federal Trade Commission are policing large mergers. A report released on October 22 by Rep. Becca Balint and Sen. Elizabeth Warren alleged that the current administration routinely approves harmful mergers. The report cited the Compass-Anywhere real estate deal as an example of excessive market control. Data from the law firm Dechert shows that merger investigations reached a near-record low in 2025. Gail Slater, the former antitrust chief at the Justice Department, was removed from her position in February.

Both companies are currently under separate regulatory scrutiny. The Federal Trade Commission ordered nine delivery and ride-hailing firms, including DoorDash and Instacart, to submit detailed information on how they use personal data for pricing and wages in October. A recent investigation found that Instacart shoppers were unknowingly enrolled in pricing tests that could increase costs by up to 23%. DoorDash settled a New York City investigation in September for 131.5 million dollars, admitting that its tipping system changes left some workers underpaid.

The merger will be judged under Section 2 of the Sherman Act, which targets exclusionary conduct rather than mere market dominance. As of Thursday, the deal awaits stockholder approval and federal clearance.