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Doordash to buy Instacart in $17bn deal it says will expand customer options

By · Published by Everything Blog

In short

The transaction will be funded with at least 75% cash, offering a 26% premium over Instacart's October 22 closing price. Until the anticipated closing between late 2027 and the first half of 2028, both platforms will continue operating independently. DoorDash intends to preserve Instacart's existing app, brand identity, and proprietary technology products. Meanwhile, New York City worker protection officials have already raised alarms over corporate consolidation.

Key points

  • Instacart will maintain its independent brand, mobile application, and consumer technolog…: Instacart will maintain its independent brand, mobile application, and consumer technology products post-acquisition.
  • The deal relies heavily on cash financing, which will make up at least 75% of the total t…: The deal relies heavily on cash financing, which will make up at least 75% of the total transaction.
  • Regulatory resistance is already emerging from labor oversight agencies concerned about o…: Regulatory resistance is already emerging from labor oversight agencies concerned about ongoing corporate consolidation.

Sources checked by our analysis pipeline: 1

- Published

DoorDash will acquire grocery delivery firm Instacart in a $17bn (£12.8bn) deal, creating a behemoth that will bring more meals, quick-need purchases and big weekly shops directly to customers.

DoorDash said the deal, expected to be final in about a year, will expand options for customers and let more sellers use the companies' services.

Instacart shoppers will be able to buy from 150,000 stores, up from the current 100,000, while DoorDash will reach beyond restaurants into retail, the firms said.

"Together, we can accelerate innovation across the grocery industry and make online grocery more seamless and affordable for the millions of households we serve," Instacart's chief executive said.

"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," CEO Chris Rogers also said.

For DoorDash, the acquisition will allow it to use Instacart's grocery selection and substitution expertise, the company's co-founder and chief executive, Tony Xu, said.

"Grocery is one of the hardest things to get right online.…

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