Call it DealDash? Or maybe InstaCash?
Anyway, as was rumored earlier in the week, DoorDash has announced it is acquiring Instacart in a deal valued at $17 billion, bringing together two major players in grocery delivery, local commerce, and, of course, retail media advertising.
The deal values Instacart at $65 per share, a 26% premium to its October 22 closing price, and is expected to close in late 2027 or the first half of 2028.
Why This Matters
Beyond delivery, this is a major deal for the fast-growing retail media/commerce media industry.
Both companies have built formidable advertising businesses that help brands reach consumers as they shop. Instacart, in particular, has become a major retail media player, helping grocers monetize digital storefronts through its ad technology.
The combined company would bring together DoorDash’s consumer reach and ads business with Instacart’s grocery relationships, retail media/ad technology, and first-party shopping data.
According to the announcement, more grocers could use Instacart’s tech to build their own media networks, leading to more ad revenue. Brands would also gain a larger platform for reaching shoppers.
Experts React
Some X posts reacting to the deal:
Our Take
The deal could create a stronger retail media competitor to Amazon and Walmart, particularly in grocery and local shopping/commerce.
It also raises questions about how the two ad businesses will integrate, and whether regulators will scrutinize the combined company’s overall, unified influence over grocery delivery and retail media.
