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DoorDash strikes $17 billion deal for US rival Instacart in bets on grocery delivery
The companies said the combined service will expand store access to more than 50,000 locations and merge memberships for customers.
- On Thursday, DoorDash announced it is acquiring grocery service Instacart for $17 billion, integrating the two delivery platforms to allow users to order groceries and retail items through DoorDash's network.
- Facing increased competition from Amazon and Walmart, Instacart struggled to find new growth paths over the past two years after reaching peak success during the Covid pandemic when demand for grocery delivery surged.
- Customers will gain access to more than 50,000 additional stores, expanding the existing platform of nearly 100,000 locations, while DashPass members will pay one unified membership fee instead of two.
- This transaction represents a significant chapter of consolidation in the delivery industry; DoorDash previously acquired United Kingdom-based Deliveroo, while Uber now owns Postmates and Delivery Hero.
- Rising fuel costs and declining share prices have pressured the company's financial performance, while platforms face legal scrutiny over worker treatment, including DoorDash's $131.5 million settlement last month with New York City regulators.
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Leaning Left16Leaning Right3Center20Last UpdatedBias Distribution51% Center
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- 51% of the sources are Center
51% Center
L 41%
C 51%
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