Tony Xu’s DoorDash is buying Instacart for about $17 billion.

DoorDash is buying Instacart for about $17 billion, the companies said Thursday, Oct. 29. CEO Tony Xu says the deal is about helping local stores win. Instacart’s app and brand will stay, the companies say.

In his words. “Grocery is one of the hardest things to get right online,” Xu said in the joint release. “Someone has to pick a ripe avocado, find a substitute you’d choose yourself, and get the ice cream to you before it melts.” He added that “when more people shop local, more dollars stay local.”

The numbers. DoorDash will pay $65 for each Instacart share. That is 26% more than Instacart’s closing price on Oct. 22, the last trading day before media reports. At least 75% of the total will be paid in cash. Stock is capped at 25%. Holders can choose $65 in cash, 0.3372 DoorDash shares, or a mix of $48.75 and 0.0843 shares. Final amounts depend on what others choose.

Who is buying whom. DoorDash is buying Maplebear Inc., the company behind Instacart, according to the 8-K. DoorDash has lined up a $13 billion bridge loan to help pay for the deal, the filing shows. A bridge loan is short-term money a company borrows until longer-term financing is ready.

What stays. Instacart’s brand and app will stay, the companies told AP and CNBC. “Together, we could give stores of every size more of those tools,” Xu said in the release.

What’s next. The companies expect the deal to close at the end of 2027 or in the first half of 2028. It needs approval in the U.S., Canada and Israel. Holders of about 19% of Instacart’s shares have already agreed to vote yes, according to DoorDash’s 8-K filing.

The fine print. “About $17 billion” is the equity value of the deal, the companies say. Xu signed the filing for DoorDash on Oct. 29.