DoorDash is making significant moves in the grocery delivery sector with its $17 billion acquisition of Instacart. This strategic purchase aims to enhance DoorDash’s capabilities in grocery deliveries.
Although DoorDash will now own Instacart, the latter’s brand name and app will continue to operate independently. Instacart shoppers will remain able to fulfill orders through the Instacart platform. Grocers utilizing the service can choose between partnering with Instacart or DoorDash.
With this acquisition, Instacart customers will gain access to 50,000 additional stores covered by DoorDash’s network, significantly expanding options for grocery delivery.
Instacart was founded in 2012 and specializes in grocery and convenience store deliveries across the U.S. and Canada. It distinguishes itself with its use of 600,000 independent contractors known as “shoppers.” These shoppers successfully completed 338 million orders last year, as reported in company filings.
Prior to the acquisition, Instacart’s market value stood at $14 billion. The collaboration between these two companies marks a pivotal adjustment in the grocery delivery market.