Two massive delivery companies will become one as DoorDash agreed to buy Instacart in a $17 billion deal.
The boards of both companies have approved the deal, which would bring together the largest restaurant delivery company and the largest grocery delivery app.
Instacart shareholders would get $65 per share, mostly in cash, The New York Times reported.
DoorDash said it had completed 993 million orders in the third quarter, with customers spending almost $34 billion. Instacart said it had 90.3 million orders valued at nearly $1 billion in the second quarter.
Instacart was founded in 2012 and has about 600,000 independent contractors who shop for customers and deliver their purchases, The Associated Press reported.
DoorDash came a year later as a restaurant delivery company, but has expanded to other items such as pet food, electronics, and, as of last month, clothing from Macy’s and Anthropologie, among others, according to the AP. DoorDash started delivering groceries in 2020.
Tony Xu, DoorDash co-founder and CEO, said that the purchase of Instacart will combine the grocery company’s expertise with groceries and DoorDash’s expertise in logistics and delivery.
“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 in a statement. “Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery.”
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