DoorDash intends to purchase grocery delivery service Instacart in a $17 billion transaction, the company announced on Thursday. The partnership follows DoorDash’s announcement last month that it now provides same-day delivery from every Costco location across the United States.
Combining Grocery Expertise and Delivery Networks
DoorDash co-founder and CEO Tony Xu explained in a press release that online grocery delivery presents significant operational challenges. He noted that delivering items like ripe avocados and frozen goods requires specialized care, and Instacart has spent years mastering those processes for grocers while DoorDash developed a reliable local delivery network and technology.
Following the finalization of the agreement, which is anticipated to take place by late 2027 subject to shareholder and regulatory approvals, both platforms will maintain separate operations and keep the Instacart brand name. Subscribers to both DashPass and Instacart Plus will eventually pay a single membership fee to access benefits across both services.
Recent Regulatory Settlement
Prior to the acquisition announcement, DoorDash faced scrutiny in early 2026 when the New York City Department of Consumer and Worker Protection alleged that DoorDash and Uber Eats failed to fairly compensate delivery workers.
DoorDash subsequently agreed to a $131.5 million settlement announced in September. The company acknowledged in a statement that technical errors resulted in underpaid or delayed payments to delivery drivers, stating that the unintentional mistakes were unacceptable.
