DoorDash paired 34% quarterly revenue growth with an agreement to acquire Instacart at an approximate $17 billion equity value, a proposed expansion of its grocery-delivery business that still requires shareholder and regulatory approvals.
The results and deal terms appeared in a release attached as Exhibit 99.1 to DoorDash’s Oct. 29 Form 8-K filing with the Securities and Exchange Commission. Revenue reached $4.616 billion for the quarter ended Sept. 30. GAAP net income attributable to DoorDash, Inc. common stockholders rose 91% to $466 million, while adjusted EBITDA increased 41% to $1.06 billion.
Total orders climbed 28% to 993 million, and Marketplace GOV, or gross order value, grew 36% to $33.9 billion. Excluding Deliveroo, which DoorDash acquired, year-over-year increases were 17% for orders, 23% for Marketplace GOV and 23% for revenue, the company said.
The agreement sets a value of $65 for each Instacart share. Instacart stockholders may elect cash, DoorDash shares or a combination, subject to limits and proration. At least 75% of the total consideration will be cash, while DoorDash shares will make up no more than 25%. DoorDash expects to finance the cash portion with cash on hand and debt.
DoorDash cited Instacart’s scale and grocery-delivery efficiencies as strategic reasons for the acquisition. The company projects at least $500 million in annual synergies after investment. It expects to invest more than the total synergies during the first year after closing, and pointed to its Deliveroo integration as a precedent.
The transaction requires approval from Instacart stockholders, completion of the Hart-Scott-Rodino waiting period and other customary closing conditions, as well as regulatory clearances that include Canada and Israel. DoorDash expects the deal to close at the end of 2027 or in the first half of 2028. For the fourth quarter, it forecast Marketplace GOV of $35.4 billion to $36.4 billion and adjusted EBITDA of $900 million to $1.1 billion.
