DoorDash has agreed to buy Instacart for $17 billion, uniting the dominant restaurant delivery app with the leading grocery delivery service. Under the terms, Instacart shareholders will receive $65 per share, a 26% premium over the price before reports emerged. The boards of both companies have approved the deal, which is DoorDash's largest acquisition to date, surpassing its buyouts of Wolt and Deliveroo.
Tony Xu, chief executive of DoorDash, stated that the combination would leverage Instacart's grocery expertise and DoorDash's delivery network to provide local stores with more tools. In the third quarter, DoorDash completed 993 million orders, generating $4.6 billion in revenue, while Instacart handled 90.3 million orders in the second quarter. Both companies are headquartered in San Francisco.
The deal offers DoorDash a shortcut to scale in the competitive grocery delivery sector, adding Instacart's relationships with over 2,200 retailers. However, the merger faces antitrust scrutiny and potential pushback from gig workers and grocery stores. The companies expect the transaction to close in late 2027 or 2028.
Source: New York Times Business · Summarized by HeadlinesBriefing