Key facts
- DoorDash offered Instacart shareholders $65 per share, a 26% premium to the Oct. 22 closing price.
- Consideration will be at least 75% cash, with Instacart shareholders able to elect cash, DoorDash stock or a combination.
- The deal could face scrutiny over its impact on competition, with New York City's Department of Consumer and Worker Protection calling it a 'troubling trend' of consolidation.
DoorDash said on Thursday it would buy Instacart in a deal valued at about $17 billion, stepping up its push into the fast-growing US grocery delivery market as competition among app-based platforms intensifies. The transaction is expected to close at the end of 2027 or the first half of 2028. DoorDash offered Instacart shareholders $65 per share, representing a premium of about 26% to the stock's closing price on October 22 before reports of deal talks first emerged. The consideration will be at least 75% cash, with Instacart shareholders able to elect cash, DoorDash stock or a combination of the two. Shares of Instacart were flat at $58.50 in premarket trading, while DoorDash shares jumped nearly 7% after the company also reported better-than-expected quarterly revenue.