DoorDash agrees to buy Instacart for $17 billion
DoorDash has agreed to acquire Instacart in a deal valued at about $17 billion, paying $65 per Instacart share, a 26% premium over the 22 Oct closing price. Both boards approved the transaction, which is 75% cash. The combination would bring together the two largest US grocery delivery services. Instacart will keep its brand and app, and users gain access to more than 50,000 additional stores. The deal is expected to close by late 2027 or early 2028, subject to regulatory approval, and antitrust scrutiny could affect it.
Key facts
- The deal consists of 75% cash, with shareholders able to choose cash, DoorDash shares, or a mix.
- DoorDash handled over 3 billion orders last year via 9 million independent workers across 40 countries.
- Instacart completed 338 million orders in the past year through 600,000 independent contractor shoppers, according to regulatory filings.
- DoorDash had held talks with Instacart in 2021 at a higher valuation, but negotiations ended over price and antitrust concerns.
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Why it matters
The deal could reshape US grocery delivery and reduce competition among the main platforms.
What changed
First published from CNBC, The Verge, Engadget, The Independent and TechCrunch