DoorDash buys Instacart for $17B

DoorDash has announced its intention to acquire Instacart for $17 billion, a significant move that merges the leading U.S. restaurant delivery app with the dominant online grocery platform. The agreement, approved by both companies' boards, stipulates that Instacart shareholders will receive $65 per share, largely in cash, representing an 11 percent premium over its recent closing price.

This acquisition marks DoorDash's largest to date, surpassing previous international ventures. Instacart, once valued at $39 billion by private investors during its pandemic boom, went public in 2023. However, it faced increasing competition, including from DoorDash itself, which expanded its grocery delivery offerings.

For DoorDash, this deal provides a strategic advantage in the grocery sector, where orders are typically larger and potentially more profitable than individual restaurant meals. Instacart brings valuable relationships with over 2,200 retailers to the combined entity.