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DoorDash strikes $17 billion deal for US rival Instacart in mega grocery delivery bet
Reuters • • business
Key Points:
- DoorDash has offered to acquire Instacart for $65 per share, a 26% premium over its recent stock price, with the deal expected to close between late 2027 and mid-2028 pending regulatory approval.
- The acquisition aims to capitalize on the growing online grocery delivery market, which is seen as the next phase of growth beyond restaurant delivery services.
- Regulatory hurdles pose significant risks, with an extended antitrust review anticipated due to concerns about corporate consolidation and gig worker treatment.
- DoorDash plans to maintain Instacart's brand and app post-merger, combining membership programs without forcing grocers to use its delivery services exclusively.
- The deal includes substantial termination fees: Instacart would owe DoorDash $650 million if it backs out, while DoorDash would pay $1.25 billion under certain conditions if it cancels the deal.
