DoorDash to Purchase Instacart for $17 Billion, Expanding Delivery Services

Delivery service DoorDash has announced its plan to acquire grocery platform Instacart for $17 billion. This acquisition will enable DoorDash users to order groceries and products from an expanded network of retailers.

Following the merger, Instacart customers will gain access to over 50,000 additional stores beyond the nearly 100,000 already available on Instacart. Memberships for DashPass and Instacart+ will now be streamlined into a single fee.

Instacart’s CEO, Chris Rogers, remarked on the partnership’s potential to further enhance online grocery shopping. Meanwhile, DoorDash is set to maintain the Instacart brand and its technology during the transition, with both companies continuing to operate independently until the deal is finalized.

This merger is part of a broader trend in the delivery sector, following DoorDash’s acquisition of Deliveroo last year. Despite currently holding a significant market share in food delivery, DoorDash’s stock has declined due to increased costs. Similarly, Instacart struggles to find growth avenues amidst heightened competition.

Moreover, both platforms have faced criticism regarding their treatment of delivery workers, highlighted by DoorDash’s recent settlement over tipping practices. This upcoming transaction was initially reported by The Information and The Wall Street Journal.