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DoorDash to acquire Instacart for $17B

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DoorDash to acquire Instacart for $17B

DoorDash announced on Thursday that it has agreed to acquire rival Instacart for $17 billion. The acquisition would bring two major players in on-demand delivery under one roof, combining DoorDash’s dominance in restaurant takeout with Instacart’s reach in grocery delivery.

DoorDash will buy Instacart for a total value of $65 for each Instacart share, the company said. The deal has been approved by the boards of both companies.

“Over the last 14 years, Instacart has transformed online grocery by helping retailers of all sizes compete and grow, and joining forces with DoorDash allows us to do even more,” said Instacart CEO Chris Rogers in a press release.

“When our purpose-built grocery technology and trusted retailer and brand relationships are combined with DoorDash’s global consumer reach and logistics capabilities, we can create new opportunities for our retail and brand partners, offer an even better experience for customers and shoppers, and deliver compelling value for our shareholders.”

DoorDash plans to keep Instacart’s brand, enterprise technology products, and app. The company also notes that the two brands will continue to operate as separate and independent companies until the transaction closes.

DoorDash says the deal could help more grocers build out their own online ordering platforms and advertising businesses using Instacart’s technology, while grocers could also use DoorDash’s fulfillment services to handle more online orders and offer lower-cost delivery.

“Grocery is one of the hardest things to get right online,” DoorDash CEO Tony Xu said in the press 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.


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