Food delivery company DoorDash has agreed to acquire grocery delivery platform Instacart in a transaction valued at approximately $17 billion. The proposed acquisition would bring two major players in the delivery industry together, combining DoorDash’s restaurant delivery network with Instacart’s grocery delivery business.

Under the agreement, DoorDash will pay approximately $65 for each Instacart share. The boards of both companies have approved the transaction, which is expected to close toward the end of 2027 or during the first half of 2028, subject to regulatory and other conditions.

DoorDash plans to retain Instacart’s brand, application and enterprise technology products. Both businesses are expected to continue operating independently until the transaction is completed.

The combined company could offer retailers a broader range of services, including online ordering platforms, advertising technology and delivery fulfillment. DoorDash believes Instacart’s grocery expertise will complement its existing logistics network and help expand its presence in the grocery sector.

The acquisition represents a major consolidation in the on-demand delivery market. However, the companies may face regulatory scrutiny and competition from other delivery platforms as they seek to combine operations and deliver the expected business benefits.

Source: TechCrunch