DoorDash’s $17 Billion Instacart Deal Aimed at Walmart, Amazon
The delivery-app segment received a boost during pandemic-era lockdowns, but that momentum has since slowed, and the industry...
DoorDash Inc. agreed to buy rival Instacart in a deal that values the company at about $17 billion, the latest sign of consolidation in an increasingly competitive delivery market where Walmart Inc. and Amazon.com Inc. loom large.
DoorDash will pay $65 a share in cash and stock, it said on October 29, while also posting its third-quarter earnings ahead of schedule. That represents a 26% premium to Instacart’s closing stock price on October 22, the last trading day before Bloomberg News and the Information reported that the grocery-delivery company was exploring a sale. Bloomberg reported earlier this week that DoorDash and Instacart were in advanced deal talks.
DoorDash plans to use cash on hand and debt from JPMorgan Chase & Co. to finance the purchase, and said it’s aiming for investment-grade ratings. The deal is expected to close toward the end of 2027 or in the first half of 2028, at which point DoorDash plans to keep Instacart’s brand, enterprise technology products and app.
Shares of Instacart, which trades as Maplebear Inc., fell as much as 1.6% to $57.51 after markets opened in New York October 29. DoorDash’s stock jumped as much as 6.6%.
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