The proposed acquisition would combine two major delivery and advertising platforms, expanding opportunities for retailers to operate their own retail media networks.
Retail Media: DoorDash to Acquire Instacart in US$17 Billion Deal
DoorDash has agreed to acquire grocery delivery platform Instacart in a deal valued at approximately US$17 billion, bringing together two major players in online retail and creating a potentially major force in retail media advertising.
Announced on October 29, the transaction values Instacart at US$65 per share, a 26% premium over its October 22 closing price. Instacart’s board has approved the acquisition, but it remains subject to shareholder and regulatory approval.
While the agreement primarily concerns grocery delivery and e-commerce, it also has implications for the growing retail media market.
Expanding retail media opportunities
The combined company plans to offer retailers access to DoorDash’s delivery network, Instacart’s grocery technology and the advertising and AI tools developed by both businesses.
One area of particular interest is Instacart’s technology for retailer-operated websites and retail media networks. The companies say the combination could enable more grocers to establish their own advertising platforms, generating additional revenue from brands seeking to reach shoppers.
The acquisition would also give advertisers access to a larger network of online shopping environments, potentially strengthening competition in the retail media sector.
Instacart currently works with more than 2,200 retail banners representing nearly 100,000 stores. Under the proposed combination, its customers could gain access to more than 50,000 additional stores through DoorDash.
Separate operations until closing
DoorDash intends to retain the Instacart brand, app and enterprise technology products following the acquisition.
The companies will continue operating independently until the transaction closes, which is expected in late 2027 or the first half of 2028.
The deal remains subject to regulatory reviews, including in the US, Canada and Israel.