DoorDash to Acquire Instacart for $17 Billion in Major Delivery Merger
The acquisition aims to combine DoorDash's restaurant delivery network with Instacart's grocery delivery dominance, potentially leading to significant changes in the market.
DoorDash announced Thursday it has reached an agreement to purchase Instacart for $17 billion, a move that would consolidate two of the largest players in the U.S. delivery market. The proposed merger would combine DoorDash's extensive restaurant takeout service with Instacart's leading position in grocery delivery.
The all-stock deal values Instacart at $65 per share, representing an approximately 11% premium over its closing price on Wednesday. Instacart's board of directors has unanimously approved the acquisition. Both companies are headquartered in San Francisco.
The acquisition comes at a time when Instacart has faced slowing annual revenue growth amidst increasing competition from major retailers like Amazon and Walmart, both of which have expanded their own grocery delivery services. By joining forces, DoorDash and Instacart could potentially implement price adjustments and enhance service speed and offerings for consumers.