DoorDash to buy Instacart in $17bn deal it says will expand customer options

DoorDash is set to acquire Instacart in a $17 billion deal, expanding its customer offerings and allowing more sellers to utilize both companies' services. This merger, expected to be completed within a year, will increase the number of stores available for Instacart shoppers, boosting DoorDash's presence in retail beyond just restaurants.

Instacart CEO Chris Rogers stated that the partnership will accelerate innovation in the grocery industry, making online grocery shopping more seamless and affordable for millions of households. DoorDash's co-founder and CEO, Tony Xu, emphasized that Instacart's expertise in grocery selection and substitution, combined with DoorDash's delivery network and technology, will help the companies excel in the challenging online grocery market.

The acquisition, valued at $65 per share, is DoorDash's largest to date and could enable it to compete with delivery giants such as Amazon. Despite potential antitrust concerns, the deal will likely continue to operate the existing brands and technologies of both companies until the merger is finalized.