DoorDash agrees to buy Instacart for $65 a share, valuing it at about $17bn

DoorDash will pay $65.00 for each share of Instacart, the grocery-delivery company whose legal name is Maplebear Inc., the two companies said on 29 October 2026, putting the equity value at about $17bn. The joint announcement puts the premium at 26% over Instacart's closing price on 22 October 2026, a date it described as the last trading day before media reported on a possible deal. Instacart holders can choose cash, DoorDash stock or a mix. Per share, the options are $65.00 in cash, 0.3372 DoorDash shares, or $48.75 in cash plus 0.0843 shares, according to DoorDash's Form 8-K.

Stock is capped at 25% of the total consideration, so at least 75% will be paid in cash, and stock elections will be cut back pro rata if too many holders ask for shares, the companies said. Instacart's board backed the agreement unanimously, and holders of about 19% of Instacart's outstanding shares have signed agreements to vote in favour, according to the release. Until closing, the two will keep operating as separate, independent companies, they said. The companies expect to close at the end of 2027 or in the first half of 2028, subject to a vote by Instacart holders, US antitrust clearance, approvals in Canada and Israel and other conditions.

The companies argue that pairing DoorDash's delivery network with Instacart's grocery and fulfilment software would give stores of every size technology like that built by the biggest online retailers and grocers. DoorDash said Instacart users could shop at more than 50,000 further stores beyond the nearly 100,000 already on Instacart, and that subscribers to both DashPass and Instacart+ would pay a single membership fee rather than two, which it estimated would save them $100m a year. It said it expects to keep the Instacart brand, app and enterprise technology products after closing and that local grocers would stay free to use any delivery platform, according to the release.

DoorDash plans to fund the cash portion from cash on hand and new debt, and JPMorgan Chase Bank has committed, subject to customary conditions, to a 364-day senior unsecured bridge loan of up to $13.0bn, according to the 8-K. The deal has no financing condition. Either side can walk away if the merger has not closed within 12 months of signing, a deadline that extends automatically by up to four three-month periods if only antitrust conditions remain open. Instacart would owe DoorDash $650m in specified cases, including if it took a superior offer. DoorDash would owe Instacart $1.25bn if the deal ends because only antitrust approvals are outstanding at the final deadline or a final antitrust order blocks it.

At 10:05 ET (15:05 CET), Instacart shares stood at $57.87, down 0.94% on the session and below the $65.00 cash price, according to Google Finance. DoorDash shares were up 5.83% at $179.36 at 10:04 ET (15:04 CET), according to Google Finance. Both prices were still moving in early New York trading.