- Published
DoorDash will acquire grocery delivery firm Instacart in a $17bn (£12.8bn) deal, creating a behemoth that will bring more meals, quick-need purchases and big weekly shops directly to customers.
asserted
that → publish → customers
DoorDash said the deal, expected to be final in about a year, will expand options for customers and let more sellers use the companies' services.
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sellers → say → services
Instacart shoppers will be able to buy from 150,000 stores, up from the current 100,000, while DoorDash will reach beyond restaurants into retail, the firms said.
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firms → buy → retail
"Together, we can accelerate innovation across the grocery industry and make online grocery more seamless and affordable for the millions of households we serve," Instacart's chief executive said.
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executive → accelerate → households
"Over the last 14 years, Instacart has transformed online grocery by helping retailers of all sizes compete and grow, and joining forces with DoorDash allows us to do even more," CEO Chris Rogers also said.
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Rogers → transform → more
For DoorDash, the acquisition will allow it to use Instacart's grocery selection and substitution expertise, the company's co-founder and chief executive, Tony Xu, said.
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founder → allow → expertise
"Grocery is one of the hardest things to get right online.
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Grocery → get → things
Someone has to pick a ripe avocado, find a substitute you'd choose yourself, and get the ice cream to you before it melts," Xu said.
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Xu → have → you
He added that "Instacart has spent years learning to do that well for grocers, while DoorDash has built a delivery network and technology that local stores rely on every day".
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stores → add → day
The deal, expected to be done by the end of 2027 or first six months of 2028, is DoorDash's biggest acquisition to date, and could help it take on delivery giants like Amazon.
uncertain
deal → expect → Amazon
Morningstar analyst Martin Szumski told Reuters that the growth area in food delivery was shifting.
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area → tell → delivery
"Restaurant delivery is maturing, and growth now lies in more frequent, higher-value orders: weekly grocery shops, convenience items, and retail," he said.
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he → mature → orders
In the agreement, DoorDash will acquire Instacart for a value of $65 a share, which would be a 26% premium on the closing price of Instacart stock on 22 October - the price before news of the potential merger first emerged.
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news → acquire → merger
The deal will be at least 75% cash, DoorDash said.
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DoorDash → say → ?
DoorDash plans to keep Instacart's brand, app, and technology products.
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DoorDash → plan → products
The delivery services will keep operating as independent companies until the deal is concluded.
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deal → operate → companies
The merger may raise antitrust issues with government regulators, Reuters also reported.
uncertain
Reuters → raise → regulators
New York City's commission on consumer and worker protections, which last month reached a $131.5m settlement with DoorDash over allegations of underpaying workers, said in a statement: "This proposed merger continues a troubling trend of mega-corporations consolidating.
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corporations → reach → trend
"
"Whether or not this merger proceeds, we will fully enforce delivery workers' rights," it added.
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it → proceed → rights
The Aporia
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