Two Delivery Giants Are Teaming Up, And Your Local Grocery Store Could Win.

Grocery shopping could soon get a boost for stores of every size, as DoorDash has agreed to acquire Instacart in a deal valued at about $17 billion, with a price of $65 per Instacart share. The companies say the goal is to help local supermarkets and grocers reach more customers with the same kind of technology that the biggest online retailers and grocers build for themselves. DoorDash CEO Tony Xu explained that Instacart has spent years learning how to help grocers run their online businesses well, while DoorDash has built a delivery network and technology that local stores rely on every day. Together, he said, the companies could give stores of every size more of those tools and unlock the potential of grocery delivery.

DoorDash says shoppers could benefit too, because more supermarkets could use Instacart's platform to run their websites, which means more local stores to choose from when ordering groceries. Instacart CEO Chris Rogers said the company has spent 14 years helping retailers of all sizes compete and grow, and that joining DoorDash will let it do even more. DoorDash plans to keep Instacart's brand, enterprise technology products, and app, so familiar tools should stay available, and the two companies will continue operating separately until the deal closes. The agreement still needs shareholder and regulatory approvals, and the companies expect it to close at the end of 2027 or in the first half of 2028, giving everyone plenty of time to see what comes next for local grocery delivery.

Source:https://patch.com/california/across-ca/doordash-gobbles-instacart-17-billion-deal