DoorDash announced Thursday that it will acquire Instacart in a deal valued at approximately $17 billion.

The agreement values Instacart at $65 per share, representing a 26 percent premium to its closing price on October 22, the last trading day before reports of sale talks emerged. The transaction involves a mix of cash and stock, with at least 75 percent paid in cash and up to 25 percent in DoorDash shares.

DoorDash shares rose nearly 7 percent following the announcement, which coincided with the release of the company's third-quarter earnings. Instacart shares traded flat in premarket activity.

The combined entity will integrate DoorDash's expansive delivery network with Instacart's grocery fulfillment technology and retailer partnerships. Executives said the deal will allow stores of all sizes to access advanced tools for online sales and delivery, potentially expanding options for consumers and creating more earnings opportunities for delivery workers.

The companies highlighted expected consumer savings of an estimated $100 million annually from eliminating the need for separate membership programs. The transaction is expected to close by the end of 2027 or in the first half of 2028, subject to regulatory approvals and shareholder votes.

This consolidation reflects ongoing competition in the delivery sector, where platforms continue to expand into grocery and retail services amid shifting consumer habits toward online ordering.