DoorDash agrees to buy Instacart for $17 billion

DoorDash has agreed to acquire grocery delivery company Instacart in a transaction valued at about $17 billion, a combination that would join two major U.S. delivery platforms. The agreement remains pending and is expected to close at the end of 2027 or in the first half of 2028, the companies said. Under the terms announced by DoorDash, Instacart shareholders would receive $65 per share, with at least 75% of the consideration in cash. Shareholders may elect cash, DoorDash stock or a combination, the company said. The companies’ boards have approved the agreement, according to one account of the announcement. DoorDash said Instacart would retain its brand and technology, and that the companies would continue operating independently until the transaction closes. Instacart customers would gain access to more than 50,000 additional stores through DoorDash’s network, on top of the nearly 100,000 stores already available on Instacart, the companies said. DashPass and Instacart members would also be able to use one membership fee instead of two. The deal would expand DoorDash’s grocery business by combining its delivery network with Instacart’s relationships with retailers. DoorDash...