DoorDash is promising shoppers more stores, faster deliveries, and potentially lower subscription costs through a planned $17 billion acquisition.

The deal, the latest consolidation in the competitive delivery market, will boost DoorDash's grocery segment, in which it competes with Walmart and Amazon.

DoorDash has agreed to acquire Instacart for about $17 billion as it expands beyond restaurant delivery and deeper into the U.S. grocery market. The deal, expected to close in late 2027 or the first half of 2028, could face regulatory scrutiny over further consolidation in the delivery industry. Reu...

SAN FRANCISCO - DoorDash will acquire Instacart for about $17 billion, the companies announced Thursday, uniting two delivery giants under one roof. DoorDash will pay $65 a share in cash and stock, an 11% premium to Instacart’s closing price on Wednesday, and about 26% above Instacart’s closing price on Oct. 22, the last trading day before reports surfaced of a possible sale. Shares of DoorDash jumped more than 6% in morning trading following news of the deal, while Instacart traded near the flatline. The deal is slated to close at the end of 2027 or early 2028, the companies said. DoorDash expects to retain Instacart’s brand, enterprise technology products and app once the deal closes. DoorDash CEO Tony Xu said in a statement that grocery is “one of the hardest things to get right online.” He pointed to difficulties around picking the right inventory and delivering perishable goods to customers’ doorsteps without damaging them on the way. “Instacart has spent years learning to do that well for grocers, while…