DoorDash to buy Instacart for $17bn in major grocery delivery consolidation
Summary
DoorDash agreed to buy Instacart for $17 billion, combining the delivery companies’ grocery operations. DoorDash said Instacart will keep its brand and app, while customers will gain access to 50,000 more stores through DoorDash’s network.Key Facts
- Instacart shoppers can continue fulfilling orders, and grocers can choose to work with either Instacart or DoorDash.
- Instacart had about 600,000 independent-contractor shoppers, who completed 338 million orders last year.
- DoorDash operated in 40 countries and completed more than 3 billion orders last year using 9 million independent delivery workers.
- DoorDash said the acquisition will combine Instacart’s grocery expertise with DoorDash’s logistics and delivery operations.
- Consumer Edge data showed Instacart’s share of spending on U.S. delivery platforms fell from 26% to 18% over five years.
- Over the same period, DoorDash’s share rose from 44% to 59%, while Uber Eats remained just under 20%.
- The article said it was unclear how the deal would affect Instacart’s Walmart partnership; DoorDash stopped delivering for Walmart in 2022.
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