DoorDash has agreed to acquire Instacart in a $17 billion deal.
DoorDash plans to combine the two largest US grocery delivery services, although antitrust scrutiny could threaten the deal.
DoorDash has agreed to a $17 billion Instacart acquisition, bringing together the two largest US grocery delivery platforms. However, potential antitrust scrutiny could stand in the way of the deal.
DoorDash built its popularity through restaurant meals and takeaway orders, but it also offers grocery delivery and other shopping services. Adding Instacart’s network could strengthen those operations and expand its grocery delivery business.
The agreement also follows another recent expansion effort by DoorDash. Earlier this year, the company began testing a drone delivery programme.
Instacart acquisition follows earlier talks
DoorDash previously pursued a deal for Instacart in 2021, with talks placing the grocery delivery company at a higher valuation. Those negotiations reportedly broke down over concerns about the price and possible antitrust regulation.
Now, the companies have reached an agreement at a $17 billion valuation. The proposed combination would unite two leading grocery delivery networks, making competition concerns a potential obstacle once again.
Before the announcement, Instacart had reportedly explored options for a sale. Uber also reportedly emerged as a potential buyer at one stage, alongside DoorDash.
For DoorDash, the agreement represents another move beyond the restaurant delivery service that helped establish its business. Meanwhile, Instacart’s grocery network offers a way to build on shopping services DoorDash already provides.
