DoorDash Agrees to Acquire Instacart for About $17 Billion
publishers 69articles 81first reported 24 Oct, 16:30 UTCdeveloping since 24 Oct · 9 editions
DoorDash has agreed to acquire grocery-delivery company Instacart in a deal valued at approximately $17 billion, the companies announced Thursday.
The agreement values Instacart at $65 per share, a 26% premium to its closing price on Oct. 22. Instacart shareholders may elect to receive cash, DoorDash stock or a combination of both, subject to terms ensuring that stock accounts for no more than 25% of the total consideration. Instacart’s board unanimously approved the transaction.
DoorDash said Instacart will retain its brand and app, while Instacart’s independent-contractor shoppers can continue fulfilling orders through the service. Grocers will also be able to choose whether to work with Instacart or DoorDash. The companies said Instacart customers could gain access to more than 50,000 additional stores beyond the nearly 100,000 already available on its platform.
The acquisition combines Instacart’s grocery-ordering and fulfillment technology with DoorDash’s delivery network. DoorDash began as a restaurant-delivery company and has expanded into groceries and other retail categories, recently adding Costco and broadening its partnership with Kroger.
The transaction would unite two major delivery platforms whose services overlap in online grocery shopping. Analysts cited by CNBC said that overlap could draw antitrust scrutiny. Instacart had previously held sale discussions with other companies, including Uber, but those talks did not produce a deal.
HOW THIS STORY WAS MADE
Written from 8 articles, 5 with the publisher's own text; 8 independent newsrooms once syndicated copies count as one; this version written 150 h after the record first saw the story; the editor kept it as written.
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- Source articles
- 81
- Given to the writer
- 8, 5 with the article's own text
- Independent newsrooms
- 8
- This version written
- 150 h after the record first saw the story
- Second model (editor)
- kept as written
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
The second model checked the writer's draft against the same sources and published it as written.
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