Business1 min read

DoorDash to acquire Instacart for $17B

By · Via TechCrunch · Published by Everything Blog

In short

The transaction has already secured formal approval from the boards of directors at both companies. DoorDash intends to preserve Instacart's existing consumer application, independent brand identity, and enterprise retail products. The entities will continue operating as separate businesses until the transaction concludes toward late 2027 or early 2028. Prior to reaching this agreement, Instacart had held acquisition talks with Uber before ultimately abandoning those negotiations.

Key points

  • Grocers will be able to expand online ordering and advertising while using DoorDash's log…: Grocers will be able to expand online ordering and advertising while using DoorDash's logistics to lower delivery expenses.
  • Both delivery companies will continue to operate independently until the regulatory and c…: Both delivery companies will continue to operate independently until the regulatory and closing processes are fully finalized.
  • Instacart agreed to the buyout following earlier discussions regarding a potential deal w…: Instacart agreed to the buyout following earlier discussions regarding a potential deal with Uber that were ultimately abandoned.

Sources checked by our analysis pipeline: 1

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 says it plans to keep Instacart’s brand, enterprise technology products, and app. The company also notes that the two brands will continue to operate…

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