DoorDash Strikes $17 Billion Deal For US Rival Instacart
DoorDash has agreed to acquire Instacart for about $17 billion as it expands beyond restaurant delivery and deeper into the U.S. grocery market. The deal, expected to close in late 2027 or the first half of 2028, could face regulatory scrutiny over further consolidation in the delivery industry. Reuters reports: DoorDash has offered Instacart shareholders $65 per share held, representing a…
DoorDash is set to acquire grocery delivery service Instacart in a $17 billion deal, expanding its reach beyond restaurant delivery into the U.S. grocery market. The acquisition, expected to finalize in late 2027 or the first half of 2028, may encounter regulatory challenges due to the consolidation in the delivery industry. According to Reuters, DoorDash presented Instacart shareholders with the option to receive $65 per share, a 26% premium to the stock's closing price on October 22 before the deal talks surfaced.
The transaction will primarily involve cash, with at least 75% of the consideration in cash and the remainder in Instacart shares, which Instacart shareholders can choose to receive in cash, DoorDash stock, or a mix of both. The deal is projected to conclude by the end of 2027 or the first half of 2028. While the merger might face regulatory scrutiny, primarily from New York City's Department of Consumer and Worker Protection, regarding competition concerns, DoorDash assured local grocers that they would have the freedom to work with any delivery platform of their choice.
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