DoorDash to buy Instacart in $17bn deal

DoorDash said it will acquire US grocery‑delivery platform Instacart for an equity value of $17 billion.

The company will pay $65 per Instacart share, a 26 percent premium to the closing price on 22 October. The deal is expected to close between late 2027 and early 2028, with both firms operating separately until then.

DoorDash announced its third‑quarter results on 29 October, reporting revenue of $4.6 billion – a 34 percent year‑on‑year increase – and total orders of 993 million, up 28 percent.

Instacart’s CEO Chris Rogers noted the past quarter was the best performance since the company went public, with revenue just over $1 billion, up 17 percent year‑on‑year.

DoorDash said the acquisition will help it scale its grocery‑delivery business, lower costs and improve service, citing the challenges of picking fresh produce and delivering frozen items on time.

DoorDash will retain the Instacart brand, its enterprise technology products and its app after the transaction is completed.

Last year DoorDash entered Ireland after buying UK rival Deliveroo for £2.9 billion and expanded into Europe in 2021 with the purchase of Finnish start‑up Wolt.

Source: Silicon Republic. Photo: Alanur Ö. / Pexels.