DoorDash’s proposed $17 billion equity-value purchase of Instacart would broaden its grocery reach, the company says, but the deal still needs shareholder approval and regulatory clearances in three countries.
The offer values each Instacart share at $65, a 26% premium to its Oct. 22 closing price. Shareholders can elect cash, DoorDash shares or a blend, but cash must make up at least 75% of the total consideration. DoorDash shares are capped at 25%, with proration possible, and DoorDash expects to fund the cash portion with cash on hand and debt.
Instacart’s board approved the agreement unanimously. Holders of about 19% of its outstanding shares have committed to vote in favor. The required regulatory steps include clearances in the United States, Canada and Israel. EconoTimes previously covered the agreement alongside DoorDash’s quarterly results in an earlier report on the company’s growth and Instacart deal.
Instacart’s third-quarter results say it works with more than 2,200 retail banners, spanning nearly 100,000 stores. For the quarter ended Sept. 30, it recorded $1.095 billion in revenue, up 17% from a year earlier, and $147 million in GAAP net income.
DoorDash projects that Instacart customers could gain access to more than 50,000 additional stores. It also estimates that DashPass and Instacart+ members could save $100 million per year by paying for one membership instead of two. DoorDash says it plans to retain Instacart’s brand, app and enterprise technology products, while grocers would remain free to use other delivery platforms. These are company projections and plans, not results already achieved.
New York City’s Department of Consumer and Worker Protection criticized the proposed deal on Oct. 28 and pledged to enforce delivery workers’ rights. Commissioner Samuel A.A. Levine described it as part of a “troubling trend” of corporate consolidation affecting workers and consumers.
Reuters reported that delivery companies are facing more cautious consumer spending, slower growth than during the pandemic boom and rising labor and regulatory costs. Instacart canceled its scheduled Nov. 5 earnings call after the deal announcement. The companies have not announced a shareholder-vote date and expect the transaction to close at the end of 2027 or in the first half of 2028, subject to approvals.