DoorDash to acquire Instacart for $17 billion
By the AFREEQUE newsroom, based on TechCrunch
DoorDash has agreed to acquire grocery delivery specialist Instacart for $17 billion, or $65 a share. The two brands and their apps will remain separate until the deal is completed, bringing together their meal and grocery delivery operations, according to TechCrunch.
DoorDash, a US on-demand delivery company, has reached an agreement to acquire Instacart, which specialises in grocery delivery, for $17 billion. The deal values each Instacart share at $65 and has been approved by the boards of both companies, according to TechCrunch.
DoorDash plans to retain the Instacart brand, its business technology products and its app. However, the two companies will continue to operate separately and independently until the transaction is completed.
The combination is expected to bring together DoorDash’s presence in meal delivery with Instacart’s grocery distribution network. Shops could use Instacart’s technology to develop their online ordering and advertising activities, as well as DoorDash’s logistics services to process more orders at lower cost.
Instacart chief executive Chris Rogers said the union would open up new opportunities for retailers and brands. His DoorDash counterpart, Tony Xu, described food delivery as a market that was still developing, as competition intensifies and Instacart had already discussed a combination with Uber before those talks were abandoned.
