DoorDash, a major food delivery company, has agreed to acquire grocery delivery specialist Instacart for $17 billion, TechCrunch reported on Wednesday.

The boards of both companies approved the deal, the report said. DoorDash will pay a total of $65 per Instacart share. DoorDash plans to keep Instacart’s brand, enterprise technology products and app. Until the deal closes, the two companies will operate as independent companies as they do now.

DoorDash said the acquisition would allow more grocery stores to use Instacart technology to build their own online ordering platforms and advertising businesses. Grocery stores would be able to process online orders through DoorDash’s delivery service and also reduce delivery fees, the company said.

Instacart CEO Chris Rogers (크리스 로저스) said, "Over the past 14 years, Instacart has changed online grocery shopping by helping retailers of all sizes compete and grow," adding, "Working with DoorDash, we can do more."

DoorDash CEO Tony Xu (토니 쉬) said, "Grocery is the hardest category to do well online." He said it requires picking a ripe avocado, finding substitution items that a customer would have chosen, and delivering ice cream before it melts. "Together with Instacart, we can provide more tools to stores of all sizes and unlock the potential of grocery delivery," he said.

Instacart’s market capitalization now exceeds $13 billion. The stock is up 25 percent so far this year. TechCrunch said Instacart likely judged it was the right time to sell the company at a good price before competition in the grocery-delivery market intensified. Bloomberg earlier reported that Instacart also held talks with Uber, but Uber pulled back.

The deal is expected to close in late 2027 or the first half of 2028.