US takeaway app DoorDash agrees to buy rival Instacart for $17 billion to create a grocery delivery giant

DoorDash's offer prices Instacart at $65 a share — around 26% above where the stock traded before rumours of talks surfaced — with no less than three-quarters of the consideration paid in cash, largely funded through debt. Together, the companies would form a delivery giant operating across 40 countries with 9 million couriers and 50,000 more storefronts available to Instacart's existing customers.

Instacart's revenue growth had been losing momentum as Amazon and Walmart pushed deeper into same-day grocery delivery.

DoorDash CEO Tony Xu said 'grocery is one of the hardest things to get right online' and that Instacart had devoted years to mastering it.

The transaction is not expected to close until late 2027 or early 2028 and may draw regulatory scrutiny on competition grounds.