The deal promises more stores and easier deliveries, but combining two major platforms raises questions about competition, grocery prices and worker pay.

DoorDash wants a bigger share of America’s grocery business. The delivery giant announced a $17 billion deal to acquire Instacart, bringing together two of the country’s largest delivery platforms.

DoorDash will pay $65 per Instacart share, a 26% premium over its October 22 closing price. The transaction is expected to close in late 2027 or early 2028, pending shareholder and regulatory approvals.

For consumers, the companies are promising more choices, faster deliveries and potentially fewer subscription fees. But the merger also raises questions about what happens to prices when two major competitors become one.

What Customers Could Gain

According to the companies’ announcement, Instacart customers could gain access to approximately 50,000 additional stores through DoorDash’s network. The companies are also exploring combining DashPass and Instacart+ benefits into a single membership.

Instacart would retain its name and app, while its approximately 600,000 independent shoppers could continue fulfilling orders. Grocery retailers would remain free to work with competing delivery services.

The acquisition also strengthens DoorDash’s position against Amazon and Walmart, which have expanded their grocery delivery operations. Instacart brings established supermarket relationships and technology that supports online ordering and retail advertising.

The Bigger Picture

Combining DoorDash and Instacart could make grocery delivery more convenient while giving one company greater influence over delivery fees, retailer commissions and worker opportunities. For consumers already facing high grocery costs, less competition could mean paying more for convenience.

Sources: DoorDash and Instacart announcement | Associated Press