DoorDash to acquire Instacart for $17bn
Deal further consolidates the fiercely competitive US food delivery market
The food delivery sector may soon see a major transformation as DoorDash looks to acquire Instacart, according to recent reports. The Wall Street Journal reveals that the two companies are in advanced talks to transfer ownership for approximately $17 billion. While the deal remains tentative, a finalization could occur this week.
Instacart, known for its home grocery shopping and delivery services, previously considered selling to Uber but those negotiations did not materialize. DoorDash, which expanded into grocery delivery, might bolster its market position by acquiring Instacart. The company recently acquired Wolt, a European food delivery service, in 2022.
DoorDash's stock experienced a 6.10% drop, closing 25.63% lower for the year. Conversely, Instacart's shares rose by 7.87%, with a 35.35% increase in value for the year. DoorDash currently has a market value of around $73 billion and has reported positive earnings with a 36% year-over-year revenue growth to $3.28 billion. On the other hand, Instacart's second quarter revenue grew by 14% year-over-year to $1.04 billion.
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