The deal marks the consolidation of two major players in the retail delivery industry.

In announcing their plans to combine, DoorDash and Instacart said that the acquisition would help their retailer partners, both large and small, better reach customers with innovative technology.

DoorDash said it expects to retain Instacart’s brand, enterprise technology products and app. Until the transaction closes, the companies will continue to operate separately.

Founded in 2013, DoorDash initially grew its business as a restaurant delivery provider and expanded into grocery and nonfood delivery in recent years.

Founded in 2012, Instacart initially focused on grocery e-commerce before expanding into providing in-store technology like digital shelf labels and smart carts. The company also built out a food as medicine initiative called Instacart Health and added restaurant and nonfood retailers as delivery partners.

The deal will give DoorDash access to Instacart’s many grocery partnerships as well as its more than 600,000 delivery couriers, e-commerce capabilities and millions of users. The acquisition also serves up a sizable retail media business — Instacart’s advertising and other revenue totaled $331 million in its third quarter.

Instacart’s ad revenue accounts for roughly 30% of the company’s total revenue, based on its third-quarter results.

Over the last three years, both companies have consistently recorded year-over-year quarterly growth in orders and revenue. DoorDash’s nearly $4.6 billion in Q3 revenue was roughly four times that of Instacart’s.

Both companies have worked on tackling grocery affordability concerns for consumers. Instacart has shared that it is pushing its retailer partners to match their online prices with those in their stores.

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