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DoorDash Expands Grocery Business With Instacart Acquisition

Announced Thursday, the transaction combines DoorDash’s delivery network with Instacart’s grocery fulfillment technology.

,   and  TIPP Staff
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DoorDash has agreed to acquire grocery delivery rival Instacart in a deal valued at approximately $17 billion, aiming to strengthen its position against Amazon, Walmart and Uber.

Announced Thursday, the transaction combines DoorDash’s delivery network with Instacart’s grocery fulfillment technology. The companies said the partnership would help retailers of different sizes expand their delivery services.

DoorDash will pay $65 per Instacart share through a combination of cash and stock, representing a 25% premium over Instacart’s October 22 closing price.

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The companies also expect the combination to reduce duplication in membership programs, potentially saving customers an estimated $100 million annually in fees.

However, the deal faces opposition from the American Economic Liberties Project, which has urged regulators to block it. The group argues that the combined company would control nearly 60% of third-party grocery delivery.

The acquisition is expected to close in the coming months, subject to the required approvals.

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