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

DoorDash will acquire grocery delivery firm Instacart in a $17bn (£12. 8bn) deal, creating a behemoth that will bring more meals, quick-need purchases and big weekly shops directly to customers. DoorDash said the deal, expected to be final in about a year, will expand customer options and let more sellers use the companies’ services. Instacart shoppers will be able to buy from 150,000 stores, up from 100,000, while DoorDash will expand beyond restaurants into retail, the firms said. “Together, we can accelerate innovation across the grocery industry and make online grocery more seamless and affordable for the millions of households we serve,” Instacart’s chief executive said. “Over the last 14 years, Instacart has transformed online grocery by helping retailers of all sizes compete and grow, and joining forces with DoorDash allows us to do even more,” CEO Chris Rogers also said.

For DoorDash, the acquisition will allow it to use Instacart’s grocery selection and substitution expertise, the company’s co-founder and chief executive, Tony Xu, said. “Grocery is one of the hardest things to get right online. Someone has to pick a ripe avocado, find a substitute you’d choose yourself, and get the ice cream to you before it melts,” Xu said. He added that “Instacart has spent years learning to do that well for grocers, while DoorDash has built a delivery network and technology that local stores rely on every day”. The deal, expected to be done by the end of 2027 or first six months of 2028, is DoorDash’s biggest acquisition to date, and could help it take on delivery giants like Amazon. Morningstar analyst Martin Szumski told Reuters that the growth area in food delivery was shifting. “Restaurant delivery is maturing, and growth now lies in more frequent, higher-value orders:…