DoorDash to buy Instacart in US$17B deal as it looks to expand grocery business
DoorDash Inc. has announced a deal to buy Instacart in a transaction valued at US$17 billion as it looks to expand its grocery delivery segment in the U.S.
Under the terms of the deal, DoorDash will pay US$65 per share for Instacart, whose board has unanimously approved the agreement.
The deal will be at least 75% cash, but Instacart shareholders will be able to choose between cash, DoorDash shares, or a combination of both, subject to certain thresholds.
Instacart CEO Chris Rogers says in a news release that the deal will help it innovate in the grocery industry and make online grocery delivery easier and more affordable.
READ: Skip and Instacart partner to expand delivery services across Canada
The transaction is expected to close by the end of next year or in the first half of 2028 and will be subject to approval from Instacart shareholders, regulators including in Canada, and other conditions.
Instacart specializes in grocery and convenience store delivery in the U.S. and Canada, while DoorDash began delivering groceries in 2020 amid a surge in pandemic-era demand.
