DoorDash agreed to acquire Instacart in a $17 billion deal
DoorDash agreed Thursday to acquire Instacart in a deal valued at about $17 billion, offering shareholders $65 per share in cash, DoorDash stock or a combination. The companies say the merger would expand customer access and combine delivery and grocery technology; PBS reported it could reduce competition and potentially raise consumer prices.
More context
DoorDash has agreed to acquire Instacart in a deal valued at about $17 billion, combining two major grocery-delivery platforms. Announced Thursday, Oct. 29, the offer values Instacart at $65 a share, payable in cash, DoorDash stock or a mix.
DoorDash co-founder and CEO Tony Xu said the combination would pair DoorDash’s delivery network with Instacart’s grocery technology to give stores more tools. Instacart would retain its name and app, and its customers would gain access to more than 50,000 additional stores. The companies say DashPass and Instacart+ members could use one subscription instead of two; DoorDash estimates this could save subscribers about $100 million annually.
The deal could reduce competition and raise prices, PBS reported. Randall Sargent, an Oliver Wyman partner specializing in grocery and retail, said less competition and consolidation tend to be worse for consumers.
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Reporting
- PBS News — DoorDash offers $17 billion for Instacart in what would be big grocery delivery consolidation
- Law Commentary — DoorDash to Buy Instacart for $17 Billion, Raising Antitrust Concerns | Law Commentary
- progressivegrocer.com — THE FRIDAY 5: DoorDash to Buy Instacart in $17B Merger; Kroger's Plan for Digital Profitability | Progressive Grocer
Verifier’s note
PBS NewsHour, Law Commentary, and Progressive Grocer all report DoorDash’s roughly $17 billion deal for Instacart. Chain Store Age mentions the acquisition but does not state the deal value in the provided text.