DoorDash to buy Instacart for $17bn in grocery delivery consolidation
DoorDash agreed to acquire Instacart for $17bn, retaining the Instacart brand and app while giving Instacart customers access to 50,000 more stores, The Guardian reports.
The story in focus
DoorDash has agreed to acquire Instacart in a $17bn deal, The Guardian reports. The Instacart brand and app will remain, Instacart shoppers will continue fulfilling its orders, and Instacart customers will gain access to about 50,000 additional stores covered by DoorDash.
- DoorDash agreed to buy Instacart for $17bn, according to The Guardian.
- Instacart's brand name and app will remain after the acquisition.
- Instacart customers will gain access to 50,000 additional stores covered by DoorDash.
- Instacart's 600,000 independent-contractor shoppers completed 338m orders last year.
- Consumer Edge data cited by The Guardian show Instacart's US delivery-spending share fell from 26% to 18% over five years as DoorDash's rose from 44% to 59%.
Deal structure and operations
The Guardian reported that DoorDash agreed to acquire Instacart for $17bn. The Instacart brand and app will be retained, and Instacart shoppers can continue fulfilling orders for Instacart. Grocers may choose to work with either Instacart or DoorDash, and Instacart customers will have access to 50,000 additional stores covered by DoorDash.
Instacart, founded in 2012, specializes in grocery and convenience delivery in the US and Canada. Its 600,000 independent-contractor shoppers completed 338m orders last year, and its market value is $14bn. DoorDash, founded in 2013, operates in 40 countries, completed more than 3bn orders last year with 9m independent delivery workers, and has a market value of $73bn.
Market-share shift and executive comment
The Guardian cited Consumer Edge figures showing Instacart's share of US delivery-platform spending fell from 26% to 18% over five years, while DoorDash's rose from 44% to 59%. Uber Eats held just under 20%.
DoorDash CEO Tony Xu said the deal would combine Instacart's grocery expertise with DoorDash's logistics and delivery expertise. Xu described grocery as one of the hardest categories to get right online. The report noted uncertainty over some partnerships, including Instacart's delivery arrangement with Walmart, which DoorDash stopped serving in 2022.
What happens to Instacart's app and shoppers after the deal?
The Guardian reports the Instacart brand and app will remain, and Instacart shoppers can continue fulfilling orders for Instacart. Instacart customers will also gain access to 50,000 additional stores covered by DoorDash.
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