DoorDash agrees to buy Instacart in a $17 billion deal

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The two biggest grocery delivery services in the US could soon be one company. Engadget reports that DoorDash has agreed to buy rival Instacart in a deal valued at $17 billion

If it goes through, the merger would combine the two largest grocery delivery operations in the country, assuming competition regulators do not block it. DoorDash began as a restaurant takeaway service but already offers grocery delivery, which Instacart's network would greatly expand

DoorDash has also been testing drone delivery earlier this year. Reports from The Information and the Wall Street Journal had said Instacart was exploring a sale, with Uber also mentioned as a possible buyer

According to Semafor, DoorDash approached Instacart back in 2021 at a higher valuation, but those talks ended over price and concerns about competition rules. The article gives no breakdown of cash and shares, no closing timeline and no comments from executives

Regulatory approval looks like the biggest hurdle, because the combined company would dominate US grocery delivery. Shoppers and gig workers will want to know what happens to prices and pay. It is a huge consolidation in a market that only boomed during the pandemic

Will regulators allow this deal? And would one dominant delivery company be good or bad for customers?

DoorDash acquires Instacart in $17 billion delivery service merger - Engadgetwww.engadget.com