Instacart shoppers get 50,000 more stores after $17 billion sale to DoorDash

Grocery shoppers using the Instacart app will keep using it, but the service is changing ownership. DoorDash announced on October 29 that it will purchase Instacart for $17 billion. The transaction consolidates two of the largest grocery delivery operations in North America into a single company.

Under the new arrangement, the Instacart name and application will remain available to consumers. Shoppers can continue placing orders through the Instacart interface. Additionally, the company stated that Instacart customers will gain access to 50,000 extra stores that are currently covered by DoorDash. Supermarkets will have the choice to partner with either brand or both.

The path to this merger involved years of shifting alliances. Instacart launched in 2012 and focused on grocery and convenience store deliveries in the United States and Canada. DoorDash started in San Francisco in 2013 as a restaurant delivery service before expanding into other product categories. DoorDash entered the grocery market in 2020 during the pandemic. At that time, supermarkets were hesitant to partner with the company. Kroger began working with DoorDash in 2022 but initially limited it to specific items like flowers and sushi from a small number of locations. By the fall of 2025, that relationship expanded to include the full inventory of Kroger’s 2,700 U.S. stores. DoorDash also added Costco deliveries last month.

DoorDash co-founder and CEO Tony Xu said the acquisition combines Instacart’s grocery expertise with DoorDash’s logistics network. “Groceries are one of the hardest things to get right online. Someone has to pick a ripe avocado, find a substitute you’d pick yourself, and get the ice cream before it melts,” Xu said in a statement. He added that the combined entity aims to provide more tools to stores of all sizes.

Market share data shows a shift in the industry over the last five years. According to Consumer Edge, Instacart’s share of U.S. delivery platform spending dropped from 26% to 18%. During the same period, DoorDash’s share rose from 44% to 59%. Uber Eats remained stable at just under 20%. Instacart had a market value of $14 billion before the deal, while DoorDash is valued at $73 billion.

The deal creates some operational questions regarding existing partnerships. Instacart currently offers delivery from Walmart, but DoorDash stopped offering Walmart deliveries in 2022. It is not yet clear how the merger will affect that specific relationship.