DoorDash is set to acquire its rival, Instacart, in a lucrative $17 billion deal. The company announced in a release on Thursday (October 29).
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When DoorDash was founded in 2012, it served as a bridge between customers who wanted food from restaurants that did not offer delivery services. But recently, they have dipped their toe into the grocery delivery market as well. In the release, DoorDash says that the merger will help promote the two companies' shared "mission to help local businesses succeed."
DoorDash to Acquire Instacart in $17 Million Deal
"Families turn to Instacart for the big weekly shop. And to DoorDash for meals and nearly anything else they need from their neighborhood in under an hour. The combined company will offer grocers and retailers of every size DoorDash's delivery network and Instacart's grocery and fulfillment technology," the company wrote in the release.
The company also says that the new merger will give consumers a wider range of options on both apps. The release notes that Instacart customers will be able to shop at 50,000 additional stores.
"On either app, customers pick a store in their own community, and the store makes the sale. Consumers will have more stores to choose from, more savings opportunities when they choose to shop with a local business, and faster delivery options, while Dashers and Shoppers will have more ways to earn," the statement adds.
Proposed Deal Offers Benefits to Consumers & Employees
Other benefits for consumers include getting two memberships for the price of one. Previously, consumers would have to pay two monthly membership fees. One for DashPass and one for InstaCart+. However, under the new merger, they will only have to pay one monthly fee. The company estimates that it could save consumers an estimated $100 million per year just in membership fees.
There is also a benefit for the employees of DoorDash and Instacart. With the influx of their network of restaurants and grocery stores, the company says that there will be more earning opportunities available for Dashers and Instacart Shoppers.
"More orders for local businesses can create more earning opportunities, with more choice over when and how they earn, whether that's grocery orders on a quiet day, restaurant orders at peak times, or both," the release adds.
The deal between the two platforms has not been made official. According to The New York Times, they are expected to close the sale in Late 2027.
