Merger Overview
The deal combines the two largest grocery delivery platforms in the US.
Industry Impact
DoorDash has struck a deal to acquire rival Instacart in a deal valued at $17 billion. The purchase will combine the two biggest grocery delivery services in the US, assuming it isn't stymied by antitrust scrutiny.
Industry Impact
DoorDash gained popularity as a restaurant and takeout option, but it does also offer other shopping services, including grocery delivery. The integration of Instacart's network could help further bolster those features. The Instacart acquisition isn't DoorDash's only recent expansion. Earlier this year, the company began testing a drone delivery program.
Previous Talks
Multiple advanced reports, including from industry publications, had recently suggested that Instacart was exploring options for a sale. In addition to DoorDash, at some point Uber was also reportedly a potential buyer.
Previous Talks
The announcement follows previous discussions between the companies. Negotiations had taken place at a higher valuation back in 2021, but those talks reportedly ended due to concerns over price and possible antitrust regulation.
