DoorDash to buy Instacart for $17 billion

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Set us as preferred DoorDash announced Thursday it will buy rival Instacart for $17 billion in a deal that the company says will help local businesses compete with delivery giants such as Amazon and Walmart.One of the most popular app-based delivery services in the U.S., DoorDash delivers hot meals from restaurants as well as groceries and other items from stores like CVS and Target.

The company is paying $65 per share in cash and stock to acquire Instacart, which represents a 26% premium to Instacart’s closing stock prior to the first media reports of the planned acquisition.Instacart occupies a narrower niche than its soon-to-be owner — it offers grocery delivery from supermarkets and some retailers but does not deliver prepared meals.

It went public in 2023 after experiencing a surge in demand related to the COVID-19 pandemic.Business The popular delivery platform DoorDash is in talks to acquire rival Instacart in a deal that could be finalized this week, the Wall Street Journal reported.The combination of the two San Francisco-based rivals has already raised antitrust concerns, but it could also help combat the dominance of major e-commerce companies.“The tie up between these two companies could create a little more monopolistic power,” said Scott Hanson, a financial advisor and co-foonder of Allworth Financial.

“But on the other hand, maybe it gives them an opportunity to compete more head-on with with Amazon.”The deal could also help DoorDash build on its expansion into grocery delivery, analysts said, and give the company a financial boost after seeing its shares fall 20% so far this year.DoorDash shares were up 3% on Thursday following its announcement, reaching $177.62 per share with a market value of $75 billion.

Instacart shares have risen 30% this year and fell nearly 2% in midday trading Thursday to...