Your late-night DoorDash orders and weekly Instacart grocery hauls could soon have a lot more in common than you think.
On Thursday, DoorDash announced that they’ll be acquiring Instacart for a whopping $17 billion — a deal that will bring two of the country’s largest delivery platforms under one roof. The acquisition could change how millions of Americans, including college students, order groceries, takeout and everyday essentials.
But what exactly does this deal mean for users, and why is it even happening?
Why is DoorDash buying Instacart?
The acquisition would allow DoorDash to expand beyond restaurant delivery into the growing online grocery market, where it faces competition from retailers like Walmart and Amazon.
In the press release, DoorDash co-founder and CEO Tony Xu said “grocery is one of the hardest things to get right online,” citing challenges like selecting ripe produce and transporting temperature-sensitive products.
“Instacart has spent years learning to do that well for grocers, while DoorDash has built a delivery network and technology that local stores rely on every day,” Xu said. “Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery.”
The deal would also consolidate an already increasingly concentrated delivery market. If the acquisition closes, DoorDash will now hold a sizable stake in the grocery delivery space, alongside over 65% of the U.S. food delivery market.
What does this mean for college students?
For students who rely on both platforms, the deal could mean good news! One of the biggest potential benefits is a cheaper subscription.
Currently, DashPass and Instacart+ are separate memberships, each charging $9.99 per month. For those registered with student discounts, DashPass is $4.99 per month. While Instacart doesn’t offer student discounts by month, they do give students 50% off the first year of an annual Instacart+ membership.
Under the proposed arrangement, customers would pay one membership fee for both services, potentially saving money — though the companies have not announced the combined membership’s price, so it’s not a guarantee.
However, DoorDash estimates the combined membership could save users an estimated $100 million annually in subscription fees alone.
In addition to fee changes, students who are avid Instacart users could find themselves with access to more than 50,000 additional stores.
What about Dashers and Shoppers?
In their press release, DoorDash said the acquisition would create more earning opportunities for its drivers and for Instacart Shoppers, who would have more choice over “when and how they earn.”
Dashers and Shoppers will be able to choose between delivering restaurant meals and fulfilling grocery orders — and DoorDash also pledged to preserve Instacart Shoppers’ flexibility, including their ability to continue shopping exclusively on Instacart and accept orders independently.
However, labor advocates have raised concerns that the merger would reduce competition for delivery workers. Concerns regarding labor and wages could become part of the deal’s regulatory review, which is expected to face harsh antitrust scrutiny.
When will the changes happen?
Not anytime soon. The acquisition is expected to close in late 2027 or early 2028, pending shareholder approval, regulatory review and other conditions.
Until then, DoorDash and Instacart will continue operating as separate companies, meaning students can keep ordering their groceries and takeout as usual.