Deals

DoorDash To Buy Instacart Parent For $65 A Share, About $17 Billion, Mostly In Cash

DoorDash targets $500 million or more in yearly synergies, with closing expected at the end of 2027 or in the first half of 2028.

DoorDash agreed to buy Maplebear, the parent of Instacart, for $65.00 a share, an equity value of about $17 billion, the company said Thursday alongside its third-quarter results. The price is a 26% premium to Instacart's October 22 close, the last trading day before media reports of a possible deal.

Cash, stock and a bridge loan

Instacart holders can elect $65.00 in cash, 0.3372 DoorDash shares, or a mix of $48.75 in cash and 0.0843 shares. Total stock is capped at 25% of the consideration, so elections for stock are prorated if oversubscribed.

DoorDash expects to pay the cash portion from cash on hand and debt. It has a financing commitment from JPMorgan Chase Bank for a 364-day senior unsecured bridge loan, and the deal has no financing condition. The company said it is targeting a capital structure that keeps investment-grade ratings.

Instacart's board unanimously approved the agreement, and holders of about 19% of its shares have agreed to vote in favor.

The $500 million synergy case

DoorDash sees a multi-year path to $500 million or more in annual synergies, net of investments. It expects to reinvest more than 100% of synergies in the first year after close, with net synergies turning positive in year two and beyond.

The company argues scale is the missing ingredient. Managing grocers' inventory in warehouses is a fixed-cost business, it said, and Instacart's reach would help spread that cost, increase density across grocery networks and speed delivery. DoorDash says its own DashMart inventory orders reach 99%+ fulfillment accuracy and arrive more than 10 minutes faster on average.

Instacart, which makes the technology that lets shoppers order groceries for delivery or pickup and helps retailers and brands sell, also brings its Enterprise software for retailers' own storefronts. DoorDash said it can pair that with its fulfillment services.

Timeline and the quarter behind it

The deal is expected to close at the end of 2027 or in the first half of 2028. It needs Instacart shareholder approval, expiry of the Hart-Scott-Rodino antitrust waiting period, and other approvals including in Canada and Israel.

DoorDash intends to file a Form S-4 registration statement that will include Instacart's proxy statement and prospectus for the vote.

The announcement came with DoorDash's results: total orders rose 28% to 993 million, revenue rose 34% to $4.6 billion, and net income attributable to common stockholders rose 91% to $466 million. Bloomberg Law had reported the talks beforehand.

DoorDash's own release concedes that grocery delivery "still isn't there" and that consumers are "still asked to pay a premium for imperfect delivery," which is the gap it hopes Instacart's scale will close.