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DoorDash Is Acquiring Instacart for $17 Billion
Ordering up an acquisition // Image by Kait Cunniff with DALL-E
DoorDash is acquiring grocery-delivery company Instacart for roughly $17 billion.
The Big Purchase: Combining DoorDash and Instacart will create a new food-delivery giant that can rival Amazon’s and Walmart’s growing ambitions in the space. It also gives independent grocery stores a pipeline to expand their reach… at least door-to-door.
Behind The Order: Two of your favorite companies from the COVID era are joining forces.
DoorDash’s purchase of Instacart will be at least 75% cash, valuing Instacart at $65 per share — a 26% premium over its closing price last week.
Regulators still need to approve the deal, which is expected to close by the end of next year or in the first half of 2028.
Final Receipt: DoorDash is arguably the leader in restaurant delivery, but it has also been making strides in grocery delivery. The acquisition of Instacart will supercharge that ambition and allow it to scale to cover nearly every food need. What sets DoorDash apart from Amazon and Walmart is that those competitors primarily deliver from their own storefronts or fulfillment centers.
The combination of DoorDash and Instacart will give customers more options to buy things everywhere else. The companies noted that the merger would give customers access to 50,000 additional stores. If you’re not a Walmart, Whole Foods, or Amazon Fresh shopper, it essentially means DoorDash could become your go-to delivery provider. That’s a tasty business model.
Next Delivery: As the grocery business increasingly relies on gig workers, it may be heading toward a union-organizing effort too big to ignore.
Today’s email was written by David Vendrell.
Edited by Nick Comney. Polled and Copy-edited by Kait Cunniff.
Published by Darline Salazar.
