Summary
it had been in talks that placed Instacart at a higher valuation back in 2021, but those negotiations reportedly ended due to concerns over price and …
The deal combines the two largest grocery delivery platforms in the US.
DoorDash has struck a deal to acquire rival Instacart in a deal valued at $17 billion. The purchase will combine the two biggest grocery delivery services in the US, assuming it isn't stymied by antitrust scrutiny.
DoorDash gained popularity as a restaurant and takeout option, but it does also offer other shopping services, including grocery delivery. The integration of Instacart's network could help further bolster those features. The Instacart acquisition isn't DoorDash's only recent expansion. Earlier this year, the company began testing a drone delivery program.
Multiple advanced reports, including from The Information and The Wall Street Journal, had recently suggested that Instacart was exploring options for a sale. In addition to DoorDash, at some point Uber was also reportedly a potential buyer.
Today's announcement isn't the first time DoorDash had made a pitch for Instacart; it had been in talks that placed Instacart at a higher valuation back in 2021, but those negotiations reportedly ended due to concerns over price and possible antitrust regulation.
Source: Engadget
