DoorDash buys Instacart

DoorDash announced Thursday it has agreed to acquire rival Instacart for seventeen billion dollars. The deal combines two major on-demand delivery players under one roof.

Price per share

DoorDash will pay sixty five dollars for each Instacart share. The boards of both companies have approved the deal.

Instacart CEO on the deal

Instacart CEO Chris Rogers said joining DoorDash allows the company to do more with its grocery technology and retailer relationships combined with DoorDash's consumer reach.

“When our purpose-built grocery technology and trusted retailer and brand relationships are combined with DoorDash's global consumer reach and logistics capabilities, we can create new opportunities for our retail and brand partners, offer an even better experience for customers and shoppers, and deliver compelling value for our shareholders.”

Brands stay separate for now

DoorDash plans to keep Instacart's brand, enterprise technology products, and app. The two brands will operate as separate and independent companies until the transaction closes.

DoorDash CEO on grocery

DoorDash CEO Tony Xu said grocery is one of the hardest things to get right online. Instacart has learned to do it well while DoorDash built delivery networks stores rely on.

“Someone has to pick a ripe avocado, find a substitute you'd choose yourself, and get the ice cream to you before it melts.”

Instacart's market position

Instacart currently has a market cap of more than thirteen billion dollars. Its stock price is up twenty five percent for the year to date.

Deal expected to close

The acquisition is expected to close toward the end of twenty twenty seven or in the first half of twenty twenty eight. Bloomberg previously reported Instacart was in talks with Uber but walked away.