DoorDash to acquire Instacart in a deal worth about $17 billion
US food delivery company DoorDash has announced an agreement to buy grocery delivery platform Instacart in a deal valued at roughly $17 billion. The purchase would widen DoorDash's footprint in online grocery delivery.
DoorDash, a US company that began as a restaurant courier service, has announced it will buy the grocery delivery platform Instacart. The deal is valued at approximately $17 billion. It would strengthen DoorDash's position in online grocery delivery, a market where it competes with players such as Amazon and Walmart.
What DoorDash gains
DoorDash already runs its own grocery delivery business, but it faces ongoing competition from Instacart, Uber, Walmart and Amazon. By acquiring Instacart, the company would gain the platform's established grocery marketplace and its partnerships with retailers.
The source notes that DoorDash also has a reason to diversify, as rivals have been moving into the food delivery segment it is best known for. Uber, for example, has acquired Postmates and Delivery Hero.
How the rumors emerged
Speculation about a deal began last week, when The Information reported that Instacart was in talks with rival platforms Uber and DoorDash about a possible sale. On Monday, The Wall Street Journal reported that DoorDash was in advanced talks with Instacart and that a deal could be finalized as soon as this week.
The story is still developing.
