DoorDash might buy grocery delivery platform Instacart for around $17B
What's the story
Food delivery giant DoorDash is said to be in advanced talks to acquire grocery delivery platform Instacart. The deal could value Instacart at some $17 billion, as per Reuters. If finalized, the acquisition would give DoorDash access to Instacart's established marketplace and retailer ties, which it could combine with its own vast delivery network and customer base.
Timeline
Deal could be finalized tomorrow
The deal between DoorDash and Instacart could be finalized as soon as tomorrow, the source told Reuters.
However, they also cautioned that there are no guarantees it will come together.
Notably, Instacart's talks with Uber have also been called off.
Following the news of the potential acquisition by DoorDash, Instacart's shares rose some 8% in regular trading while DoorDash's shares fell by around 6%.
Market dynamics
Companies expanding beyond restaurant deliveries
The food delivery industry has been dealing with rising labor costs, stricter regulations on delivery workers, and increased competition.
These challenges have emerged after the pandemic-driven boom in online ordering started to wane.
The potential acquisition of Instacart by DoorDash comes as delivery companies look to expand into grocery and retail sectors for growth beyond restaurant deliveries.