Fast Food: DoorDash Acquires Instacart for Variety Strategy

A new strategy becomes clear as DoorDash agree to acquire Instacart. 

Each Instacart share will be bought for US$65 each, with the entire value of the transaction at around US$17bn. 

The acquisition reasoning means that DoorDash will be expanding its offering from simple one-off fast food deliveries to a more grocery-focussed strategy. 

The transaction is expected to close toward the end of 2027. The acquisition was announced shortly before the company's Q3 financial results. 

Tony Xu, CEO and Co-Founder of DoorDash, notes: “Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery. It’s still early innings, but we know that when more people shop local, more dollars stay local.”

Details behind the deal 

The company notes that the aggregate transaction consideration will be 75% in cash, minimum. 

Instacart stockholders will be able to choose cash, DoorDash stock, or a combination. 

Tony says: “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.

“Instacart has spent years learning to do that well for grocers, while DoorDash has built a delivery network and technology that local stores rely on every day.”

The company is meeting demand for fast, affordable delivery orders for those who shop online.  

A healthy competition 

With the acquisition, consumers will be greeted with an additional choice of 50,000 stores to shop from, which are added to the 100,000 stores already existing on the Instacart platform. 

A joint vision from the businesses outlines that there will be a benefit to the community through the acquisition. 

This added community benefit is part of an ongoing drive to support local businesses on Main Street by DoorDash. 

Earlier in the year, the fast food giant revealed its ‘Unlocking Main Street’ policy campaign, which it estimates could unlock up to US$10bn in savings through fee and fine reductions for small businesses. 

With the addition of Instacart, local businesses will have more opportunity to advertise their products, boosting local economies. The agreement is non-exclusive. 

Chris Rogers, CEO of Instacart, comments: “Over the last 14 years, Instacart has transformed online grocery by helping retailers of all sizes compete and grow, and joining forces with DoorDash allows us to do even more. 

“When our purpose-built grocery technology and trusted retailer and brand relationships are combined with DoorDash’s global consumer reach and logistics capabilities, we can create new opportunities for our retail and brand partners, offer an even better experience for customers and shoppers, and deliver compelling value for our shareholders. 

“Together, we can accelerate innovation across the grocery industry and make online grocery more seamless and affordable for the millions of households we serve.”

In the announcement, DoorDash speculates that local grocers could use Instacart’s tech to run their own websites and retail media networks, potentially boosting sales and ad revenue. 

Additional benefits include a combined membership for premium customers that subscribe to DashPass and Instacart +.

Doordash estimates this would save about US$100m per year in subscription fees for clients. 

DoorDash Q3 results

DoorDash will also discuss the acquisition on its earnings call later in the day. 

The main figures are in: DoorDash’s revenue has increased to US$4.6bn, a 34% YoY increase. 

Its total orders increased to 993 million, an increase of 23% YoY. 

GAAP net income belonging to DoorDash, Inc. common stockholders rose 91% year-over-year, reaching US$466m.

Additionally, Adjusted EBITDA experienced a 41% year-over-year growth, climbing to US$1,060m.

Doordash key partners: 

Lyft: DoorDash expanded its partnership with Lyft into Canada, bringing exclusive rideshare savings directly to DashPass members across major Canadian cities. By linking their accounts through either app, subscribers unlock discounts on everyday and scheduled airport rides alongside priority pickup upgrades.

NHL: The National Hockey League and DoorDash announced a multiyear partnership designating DoorDash as the league's exclusive on-demand delivery and pickup partner across Canada and the United States starting in the 2026–27 season.

SKIMS: DoorDash partnered with Kim Kardashian's popular shapewear and apparel brand SKIMS to offer on-demand retail delivery across the US. Initially launching from 17 physical stores across 11 states and Washington, D.C., with nine additional locations coming soon.  

Shopify: Through a direct integration with Shopify, DoorDash is enabling independent brick-and-mortar merchants to offer localised, on-demand fulfillment throughout the US, with global rollouts planned next. The partnership allows Shopify businesses to seamlessly link retail storefronts directly into the Dasher delivery ecosystem without disrupting established operational workflows.