DoorDash plans $17 billion Instacart deal, creating a delivery powerhouse for groceries and meals

A wider delivery network

The acquisition would bring together DoorDash’s strength in restaurant delivery and Instacart’s network of grocery partners. The companies said Instacart customers would gain access to more than 50,000 additional stores.

DoorDash has expanded its grocery business since the pandemic, partnering with dozens of grocers. CEO Tony Xu said earlier this year that the selection rivals Amazon’s while requiring less infrastructure.

Memberships and grocery access

Under the announced plan, DashPass and Instacart+ members would pay one membership fee rather than two. Instacart CEO Chris Rogers said the companies could advance innovation in grocery and make online shopping more seamless and affordable for millions of households. Rogers also said he and Xu had discussed bringing the companies together on and off over the years.

Competition in delivery

Amazon has worked to grow its grocery business, including expanding same-day delivery of perishable food to more parts of the United States over the past year. Walmart is developing its delivery network with gig-worker couriers and has also expanded into restaurant delivery.

DoorDash said combining the businesses would give other grocers a stronger chance to compete with Amazon and Walmart. Uber has also expanded restaurant and grocery delivery through Uber Eats, while moving further into premium rides and travel through a hotel-booking partnership with Expedia.