DoorDash has made a $17 billion offer to acquire Instacart, bringing two major delivery platforms together in a proposed expansion of DoorDash’s grocery and everyday-goods business.
Under the plan described by DoorDash, Instacart’s brand and application would remain active. Customers using Instacart would gain access to an additional 50,000 stores covered by DoorDash, while supermarkets would retain the choice of partnering with Instacart, DoorDash or both. The terms and status of the offer were not detailed beyond the announcement.
A larger delivery network
Instacart, which was launched in 2012, focuses on grocery and convenience delivery in the United States and Canada. Its network of about 600,000 independent contractor shoppers completed 338 million orders in the past year, according to regulatory filings. Instacart currently has a market valuation of about $14 billion.
DoorDash was established in San Francisco in 2013 and initially concentrated on restaurant delivery. It has since expanded into categories including pet products and electronics. The company operates in 40 countries and handled more than 3 billion orders last year through a network of 9 million independent workers. DoorDash has a market value of about $73 billion.
| Company | Focus and scale |
|---|---|
| Instacart | Grocery and convenience delivery in the U.S. and Canada; 600,000 shoppers and 338 million orders in the past year |
| DoorDash | Delivery across 40 countries; more than 3 billion orders last year and 9 million independent workers |
| Proposed transaction | $17 billion takeover offer; Instacart brand and app to remain active |
“Grocery is one of the hardest things to get right online. Someone has to pick a ripe avocado, find a substitute you’d choose yourself, and get the ice cream to you before it melts,” Tony Xu, DoorDash’s co-founder and CEO, said in a statement.
DoorDash entered grocery delivery in 2020, as demand for online ordering increased during the pandemic. Its relationship with Kroger began in 2022, initially covering a limited selection of items such as flowers, sushi and prepared dishes at selected stores. The partnership later expanded to include full inventories for all 2,700 Kroger stores in the United States, according to the company’s announcement.
The company has also added delivery services for Costco. The moves have accelerated DoorDash’s push beyond restaurant orders as it competes for transactions involving groceries, household goods and other products. The proposed Instacart acquisition would add Instacart’s established grocery expertise and retailer relationships to that broader logistics network.
Retailer and customer choices
DoorDash said supermarkets would be able to decide whether to work with Instacart or DoorDash, rather than forcing them onto a single platform. That arrangement would preserve the Instacart service for existing users while extending the range of stores available through the application.
- Deal value: $17 billion
- Customer access: Instacart users would gain access to 50,000 additional DoorDash stores
- Service continuity: DoorDash said the Instacart brand and app would remain active
- Retailer choice: Supermarkets could choose whether to partner with Instacart or DoorDash
The offer represents a major consolidation across delivery services, but the announcement does not state that the transaction has been completed. Until its status changes, Instacart and DoorDash remain separate operating businesses, with DoorDash presenting the combination as a way to join Instacart’s grocery capabilities with its own logistics and delivery operations.
