DoorDash is acquiring grocery delivery company Instacart in a deal valued at around $17 billion, the company announced on Thursday.

A release shared by both parties noted that DoorDash is purchasing the company at $65.00 per Instacart share, "a 26% premium to Instacart's closing price on October 22, 2026, the last trading day before media reports about a possible transaction. "

The company said the acquisition would give consumers a wider variety of store choices and "faster delivery options."

The release listed potential benefits for consumers, including 50,000 more stores for Instacart customers, one membership fee for DashPass and Instacart+ and more orders for local businesses.

"The combined company will offer grocers and retailers of every size DoorDash's delivery network and Instacart's grocery and fulfillment technology, in both apps and on stores' own websites, along with the advertising and AI tools each company has built," according to the release.

The companies said DoorDash is expected to keep Instacart mainstays, including the brand and app.

"Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery," DoorDash CEO Tony Xu said in a statement.

Instacart CEO Chris Rogers said the deal would "offer an even better experience for customers and shoppers."

The release added the deal "is expected to close in the end of 2027 or the first half of 2028."

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