The grocery delivery industry is undergoing a major shakeup after DoorDash announced that it is acquiring Instacart. Here is a look at the monumental business deal and how it may impact users and employees of both services.

DoorDash Announces Acquisition of Instacart for $17 Billion

DoorDash is buying Instacart for $17 billion, increasing the reach of both services and providing consumers with greater savings and faster delivery options. DoorDash announced the deal on Oct. 29. It will pay $65 per Instacart share, a 26% premium over Instacart’s stock price before reports of the deal surfaced.

Instacart CEO Chris Rogers said that the deal will combine its grocery technology with DoorDash's global reach to provide customers with "an even better experience." In a statement, Rogers said, “Together, we can accelerate innovation across the grocery industry and make online grocery more seamless and affordable for the millions of households we serve."

According to Bloomberg, DoorDash owns over two-thirds of the U.S. food delivery market share. This is a greater share than both Uber Eats and Grubhub. DoorDash said that it is planning to retain the Instacart brand, as well as its app and technology offerings. The deal is expected to be finalized at the end of 2027 or the beginning of 2028.

How the Deal Will Impact Customers, Delivery Drivers, and Retailers

The big question now is how the acquisition will impact customers of both services, as well as the many delivery drivers and retailers within this industry. According to a DoorDash news release on the deal, customers will soon be able to choose from the more than 50,000 stores on DoorDash and the nearly 100,000 available on the Instacart app.

The deal will also give consumers both memberships for the price of one. DoorDash said that this will save customers an estimated $100 million per year.

The acquisition will also benefit drivers of both services, according to DoorDash. Drivers will retain the ability to choose how much they work and receive the information needed to decide which orders to accept. Workers will also be able to choose whether they want to deliver for just Instacart or if they want to also add DoorDash to their options. Because DoorDash also has local businesses using its platforms, Instacart couriers will be able to earn more money by choosing grocery orders, restaurant orders, or both.

The companies will share technology resources to provide a more streamlined experience. Instacart works with almost 100,000 stores, leaning on technology that individual grocers can use to power their websites and reach more consumers through the online platform.

DoorDash uses its own DashMart Fulfillment Services, claiming to provide a “faster, more accurate, and more affordable delivery.”

DoorDash said one of the goals of the acquisition is to help local businesses grow. According to DoorDash, consumers typically use its service for meals and smaller orders delivered more quickly, while Instacart is used more for the "big weekly shop." The deal will reportedly provide retailers with access to the vast DoorDash delivery network paired with Instacart's technology.

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